Floods hit apple offtake, prices

The floods in Rajasthan, Gujarat and other states have had an unusually dampening effect in far-off Himachal Pradesh.

The floods in Rajasthan, Gujarat and other states have had an unusually dampening effect in far-off Himachal Pradesh. Apple prices in the wholesale markets, including Delhi, have taken a sudden hit with buyers staying away because of heavy rains in their home states.

Daily market reports reaching Shimla indicate that the best variety of fruit, which were selling for Rs 1200-1400 per box in July and August, is now fetching upto Rs 400 less. For low-grade and hail-damaged apples, even the coveted Red Royal varieties, prices are down to Rs 250-300.

Because offtake has been limited, the glut of apples in the northern markets8212;including Delhi and Chandigarh8212;has led to a price crash in these areas as well. But equally, there was no demand for apples at all from Rajasthan and Gujarat till last week; even sold fruit was awaiting movement.

8220;But since the flood situation has improved slightly, the market is looking up marginally,8221; says Lekh Raj Chauhan, president of the HP Fruit Growers8217; Association. 8220;Prices of the good quality fruit has gone up by at least Rs 100-150 per box. We hope the trend will continue into the next week.8221;

Simultaneously with the floods, corporations like the Adanis and Reliance, which have invested heavily in the state8217;s agricultural sector, have delayed procurements. With only the Container Corporation of India and ITC picking up apples, the regular farmer is depending solely on open market sales. Growers in the lower reaches and mid-levels, who suffered 40-60 per cent crop damage because of uncertain weather, are particularly badly hit by the twin developments.

Abhey Pant, a general manager with the Adani Group, however, dismisses misgivings about a corporate letdown. 8220;We are investing Rs 160 crore in Himachal, and have already set up three controlled atmospheric CA stores with 18,000 MT capacity. If we didn8217;t enter the business, it would mean huge losses,8221; he says. 8220;We are all set for our first-ever apple procurement in the state. Some teething troubles have forced a delay, but we will announce the procurement rates within a couple of days.8221;

So far as the processable fruits are concerned, HPMC managing director C R B Lalit says they are likely to procure 12,000-13,000 MT of apples for their two plants. More than 10 truckloads of apples are reaching the Parwanoo factory almost every day, he says, adding that they had also received a request for supply of apple concentrate from the Himachal Indage group for manufacture of apple wines..

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The Growers8217; Association is also looking to the fruit from the higher reaches of the state, where the quality of produce is exceptionally good and hence can be expected to fetch good prices. Dev Bhumi, ITC and Reliance are all in line to buy these fruits.