Apple prices jump 20% in one week on extensive crop damage in J&K

Extent of damage estimated at 10-12% in Kashmir and a marginal 2-3% in Himachal Pradesh due to pre-season snowfall

Apple prices have surged during the past one week in wholesale and retail markets due to supply disruptions caused by crop damage.

Trading around Rs 75 a kg for long, with intermittent surges, apple prices in Himachal Pradesh shot up by a 20 per cent to trade currently at Rs 90 a kg from a week ago. The fruit has also become more expensive by 22 per cent in Jammu & Kashmir, where it currently trades at Rs 55 a kg from the level of Rs 45 a week ago.

The sudden price spike is largely attributed to crop damage largely in Jammu & Kashmir due to pre-season winter snowfall. Apple is currently being harvested in J&K. Although snowfall was reported in Himachal Pradesh as well, the damage was not so severe there as most of the ripened fruit had already been picked.

“Most of the apple plants in Himachal Pradesh are in a dormant stage with fruits have already been harvested. But in a few high-terrain areas, standing crop was damaged. So, the overall crop loss can be estimated at 2-3 per cent in the state. The fruit, however, is currently being harvested in Jammu & Kashmir, and hence, crop losses are severe there. We can estimate 10-12 per cent overall crop damage across the country due to pre-season snowfall this year,” said Ravinder Chauhan, President, Apple Grower Association of India, a Shimla–based trade body set up to represent growers and intermediaries across India.

While J&K contributes to nearly 80 per cent of India’s overall apple output, Himachal Pradesh's share is 16-17 per cent. Uttarakhand and other states in north India contribute the rest to India’s overall 2.4 million tonnes of apple output.

The Union Ministry of Agriculture, in its Third Advanced Estimate, forecast India’s apple output at 2.37 million tonnes for the year 2017-18 as against 2.29 million tonnes estimated in the second advanced estimate and 2.27 million tonnes reported in the previous year.

Meanwhile, acreage under apple has also gone up, albeit marginally, to 306,000 hectares this year from 305,000 hectares a year ago.

“After apples are harvested, the plants remain dormant for nearly two months. This essentially means they require soil moisture for rejuvenation for the next season. Soil moisture in the mountains, however, is obtained only through snowfall. Which is why seasonal snowfall is good for apple plant growth for the next season. Since the snowfall has occurred early this season, plants are expected receive better soil moisture, which will help in germination of flowers and fruits next season. So, we can expect a higher apple output next season,” said an exporter.

Chauhan, however, believes there is no further room for further price hikes this year. Apple prices had jumped to trade at Rs 200 a kg in retail markets in recent years, which is unlikely to repeat this year, despite lower output.