Volatility in apple prices spoils taste for producers, retail buyers

Update: 2021-10-03 20:29 GMT

Shimla: If you are looking for fresh, crunchy and quality delicious Himachal Apples, 'don't go by the colour, or a higher price tag. This is what a lot of apple producers and orchardists are emphasizing to domestic consumers in big metropolitans viz Delhi, Mumbai, Bengaluru and Chennai.

With wholesale apple markets having recovered after a sudden crash in the prices last month, most buyers are paying Rs 180 to 250 per kg for the red delicious shining apples in the cities.

Janki Devi, a woman orchardist growing organic apples without using chemical sprays for an extra shine on the fruits admits that she sold her apples for Rs 800 to 900 per 22 kg box. It was because the crop was hailed (it had marks on the apples), the size was small and colour was dull.

"My neighbour who has used chemicals, sprays and even polished (wax) the apples sold same quality apples for Rs 1600 to 1,800 per 22 -24 kg box. This is, however, the apple marketing works in the hands of commission agents" she complained.

In the markets, the apples mostly routed from the CA stores are either wax-coated for shine or loaded with colour sprays, which are mostly harmful if consumed without peeling of the skin.

A group of youth apple growers, most of them returning home, after having completed their higher studies abroad or losing their corporate jobs in big towns have started a new way to apple marketing — the digital solutions.

"So many friends in Mumbai or Bengaluru used to ask how they can get orchard-fresh apples free from the chemicals and wax-coated skins. Now, this a solution we have tried to explore using digital platforms where the buyers can login for pre-booking and get deliveries within four to five days even in places like Chennai," said Himanshu Khagta, a young third-generation orchardist and marketing specialist. 

The apple economy in Himachal Pradesh is worth Rs 5,000 crore but doesn't have well organised marketing channels. Mostly the entire business is in the hands of commission agents and big corporate giants—who play games to loot the farmers coming to the mandis with their produce. This normally happens when the growers flood the market at one time resulting in a glut, and eventually a price crash.

As says Ankur Chauhan, an orchardist at Kotkhai "the apple is no longer as a cash crop, it's a share market fluctuating on daily basis. The day I plucked my crop, the rate was Rs 1,800 to 2,400 per box. By the time my boxes reached the market, the price crashed down to Rs 1,200 to Rs 1,300. It was a direct loss of several lakhs within 24 hours". But, that is never reflected in the retail markets where the consumers continue to pay Rs 150 to 250 per kg of apples.

There are several factors, which are not in the hands of the apple growers. The horticulture department is also to be blamed for this mess.

Prakash Thakur, former vice-Chairman of HPMC, alleges,"The department has no methodology or market intelligence to make estimates of the crop. Sometimes, they project an impending crop of up to four crore boxes without any scientific basis. Such rough and vague estimates result in the price crash."

For this reason, the department's estimates about the crop were 4 crore boxes. However, it has turned out to be less than 3 crore boxes. Now, where will the buck stop? Thakur asks.

Known as the 'apple bowl' of India, Himachal Pradesh has a more than 100-year history of producing delicious red apples. There has been hardly any season during the past 15 to 20 years when the growers had smooth marketing or better arrangements.

The Covid time has particularly been bad when labour (mostly Nepali) availability has also been a big issue. There are nearly 1.20 lakh apple growers, of which 75-80 per cent of them are only small and marginal farmers. Hail storms at the time of crop maturity, dry spell and less snow during the winters also affected the quality of the apples in some of the apple-growing belts of Shimla, Kullu, Chamba, Sirmaur, Kinnaur and Mandi districts.

The move of big market players like Adani group, which had also lowered down their purchase rates by Rs 16 per kg against last year's Rs 88 per kg for best quality, i.e. those perfect in size, colour, shine and shape caused greater distress. The Adanis has three CA stores in Himachal Pradesh and apples bought at lowest rates later sold at a high premium price in the markets of major towns and metro cities. There are several protests held against Adani group and also the state government's failure to regulate the apple market to enable the orchardist to get better prices.

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