India's apple imports may rise after crop damage in Kashmir, Himachal

Country is the world's fifth largest producer of the fruit but rains and floods have hurt domestic yield this year

India is expected to import a record amount of apples in Financial Year 2023-24 (FY24) after crops in Jammu and Kashmir and Himachal Pradesh were damaged in untimely rains and floods in July and August.

After rains, pest attacks lowered yields and affected the quality of apples ready for plucking. In India, apple trees start flowering around April and start bearing fruit in 100-110 days. The country is the world’s fifth largest apple grower.

Farmers said the heavy rains and flooding led to apples falling prematurely or shrinking. Fungal attacks in the moist climate were another reason for production falling.

The Kashmir Valley and Himachal Pradesh fulfill more than 80 per cent of India’s annual consumption of around 2.4-2.5 million tonnes of apple. Himachal typically grows around 3.5-4.5 crore boxes of apples annually (one box is 24-28 kg depending upon apple size).

Traders said Himachal’s yield might reduce to around 1-1.25 crore boxes this year. “July and August are months when the apple fruit gets its size and color, and the relentless rains this year has ensured that most of the state’s crop has got impacted in this critical period,” Harish Chauhan, a prominent apple farmer in Himachal Pradesh, had told Business Standard a few months back.

Traders and research agencies said this year apple harvest in the country might go down by at least 30 per cent, increasing reliance on imports. Between FY19 to FY23, the country imported around 337,419 metric tonnes annually for domestic demand.

India had till November imported around 259,117 tonnes of apples: 23 per cent more than the comparable period in FY23, according to a research note by SilkRoute.ag, a global agriculture trade company.

The country imports 43 per cent of its annual needs between December and March and 36 per cent between January and March. “Given the reduced production this year, imports during these (January to March) months are projected to range from 191,849 to 211,314 metric tonnes, with a 77 per cent likelihood of surpassing the higher limit,” said the note.

If this happens, India's imports could potentially set a record in FY24, surpassing the previous high of 474,830 metric tonnes in FY22, the note added.

A few months back, India lowered the import duty on apples from the United States (US) as a retaliatory tariff action to settle some trade disputes.

The move sparked protests by traders and farmers who feared superior quality US apples would flood Indian markets.

India later said that removing additional ‘retaliatory’ duty on eight products, including apples and walnuts from the US, will not affect domestic producers, but instead will result in competition in the premium market segment. It would ensure better quality at better prices for consumers, especially for items such as apples, said the central government.