Lower local production of apples in India

The local apple production in India this year is lower for traditional orchards. This is due to weather issues at the start of the spring, as well as due to a lack of care. Some of this also stems from the fact that lots of farmers had fruit stuck in off-season sales from last year, which impacted their cash flows. Himachal Pradesh is faring better at the moment, after being hugely affected by rains last year, but production is still lower than it would be normally."   

When it comes to competing with imports, the local production is targeted towards a completely different audience, Tak explains. "Local apples are still not up to the mark, as far as international standards go. Although the presence of local stocks during the off-season affects the pricing, there is a separate audience completely when it comes to imported fruit. Local apples are primarily led by the Delicious variety as far as traditional orchards are concerned. Gala and others are limited to high density orchards and specifically to the Kashmir region, but the volumes are still at a nascent stage."

The entire production can be sold to the Indian consumer and as such there is no reason for Pinevalley Agrifarms to look at exports at all, Tak states: "Local production is low in Kashmir, but better in Himachal compared to last year. Traditional orchards had a tough time in fruit setting this year, which is going to significantly impact harvest volumes. India is still a net import market, and we don't see any need for exports, especially in non-Delicious varieties. The local market remains strong, so we distribute our grown apples across India in about 18 markets."

Over the past years, consumers in India have gotten more in touch with the wide variety of options when it comes to apples. According to Tak, this has led to a shift in consumer behaviour. "The Indian consumer has evolved, having been exposed to both imported fruits and exposure with international travel. A growing disposable income has made non-Indian apple varieties more popular. In the past, the consumer would only be exposed to the Red Delicious variety. However, now there is a growing demand for Gala apples and other varieties. Our orchards produce about 70% Gala and balance others, and we have seen a strong and steady consumer shift."

Overall, this season is expected to be better than the previous one: "We expect the demand and pricing for local apples to be strong. Last year's off season was a fiasco, because of heavy imports and badly stored local apples, with lower quality, kept the market weak. However, we expect the market to start strong as production is low and many people who had a bad off season will shy away from ordering a lot of imported fruit. Therefore, this season is expected to be better and stronger for stored apples than it was during the previous year," Tak concludes.