With Poor Apple Crop, Companies Look At Imports.

AHMEDABAD: A poor apple crop in Himachal Pradesh and higher prices prevailing in the market are expected to increase imports of apples from Fuji in Japan and America. Companies are also looking to increase procurement from Jammu and Kashmir this season.

"Indian apple prices are fluctuating and very high. Import is very cheap with the Fuji apple costing us Rs 1,400 a box of 20 kg. Similarly, apples from China are competitively priced," said Adani Adani Agri Fresh vice-president Shrinivas Ramanujam. The company has the largest CA storage space for apples with an 18,000-tonne capacity in Himachal Pradesh.

Apple production in the hill state is expected to be over 22.5 million boxes which is 50% less than last year's bumper production of 44.5 million boxes (one box weighs 25 kg). India annually imports over 1.5 to 2 lakh tonne of apples from China, the US, New Zealand and Cuba. In July, about 250 containers of 20 tonne each landed in Mumbai and Chennai ports, according to industry sources. "We will be doubling our import of apple this year," said Ramanujam.

The company has been importing apples for the past three years. Adani had paid farmers the farm gate price of Rs 32 to Rs 35 a kg last year. This year, according to farmers in Kinnaur and Shimla, the company was quoting Rs 60 a kg for quality fruits. "Prices are higher than what they were in 2009 when there was a crop failure. We had then given Rs 55 a kg," said Ramanujam.

Mother Dairy, which has started procuring apples from Himachal Pradesh farms, also is planning to import the fruit this year. "In the apple season, we sell close to 20-25 tonne daily from across 400 booths in NCR. This year, we target to procure 1,000 tonne from Himachal Pradesh and Jammu and Kashmir," said Mother Dairy business head (horticulture) Pradipta K Sahoo.

Container Corporation of India with 12,000-tonne CA storage in Sonepat will start procuring in a week. "The prices are on a higher side this year. We will be exploring availability and quality of the Jammu and Kashmir market before deciding on procurement strategy from the state," said Fresh and Healthy Enterprise CEO NK Jawa. Similarly, Delhi-based Dev Bhumi Cold Chain which imported 2,500 tonne in 2010 and procured over 2,000 tonne from the domestic market expects a huge demand in the domestic market.

Source : economictimes.indiatimes.com