Kashmiri Apple Industry Faces Crisis Amidst Declining Demand and Stagnant Prices

More than 20 per cent of the apple crop remains unsold and stored in cold storage as demand for Kashmiri apples has significantly declined. Despite being stored for over nine months, a substantial portion of the previous season’s apples has not found buyers.

Apple growers and traders have expressed their concerns over this unusual situation. Based on current trends, Controlled Atmosphere (CA) storage units might continue to store last year’s apples until the next season begins. “The prices have drastically decreased compared to the rates during the main apple season in October-November 2023,” they lamented.

“Even C-grade apples fetched more returns in the main season. This is an all-time low rate for produce kept in cold storage units,” they said. The influx of apples from different countries into Indian markets has severely affected the demand for local apples, contributing to the decline in prices.

Shahid Ahmad, an employee at a cold storage unit, noted that traders who bought apples at good rates during the main season are now struggling to recover their costs. He mentioned that while rates have increased slightly in the last two weeks, apples are still being sold at around Rs 600-650 per box, compared to Rs 1,200-1,500 in the main season. “The increasing presence of South African apples in retail supermarkets and on e-commerce platforms across the country has exacerbated the situation, reducing demand for Kashmiri apples and causing significant losses for growers and traders,” Ahmad explained.

CA unit holders are also facing challenges as their storage facilities remain occupied. With the harvest of peaches, cherries, and other products, they are receiving orders for the storage of these fruits. However, managing apples and other fruits simultaneously under such circumstances becomes a hectic task, they said.

“Currently, around 20 percent of the produce is still in cold storage units. We hope for an increase in demand to fetch better returns. However, the market remains very low,” said one of the CA unit holders, who wished to remain anonymous.

The growers have suffered losses, but for the first time, produce has been kept in CA for such an extended period due to low demand, with growers hoping for an increase in demand that has yet to materialize.

Notably, approximately 3 lakh metric tons of apples are stored in different CA storages across Kashmir. On average, Kashmir produces over 20 lakh metric tonnes of apples annually, sometimes reaching up to 25 lakh metric tonnes. According to the 2017 economic survey in Jammu and Kashmir, half of Kashmir’s population is directly or indirectly dependent on the apple industry, with over 3.5 lakh hectares under apple cultivation.

The current situation has highlighted the vulnerabilities of the Kashmiri apple industry to external market factors. The growers and traders are hoping for a resurgence in demand to alleviate the financial strain and ensure the sustainability of their livelihoods. The need for strategic interventions to boost local apple demand and support the growers has never been more critical.