In Delhi’s Fruit and Vegetable Market, perhaps Asia’s largest trader can continue to avoid imports from Turkey, India’s largest Apple supplier last fiscal year. The reluctance stems from the general negative sentiment towards Ankara for active support for Islamabad during the recent India-Pakistan conflict, the two traders told ET.
What exacerbates the challenge is the continued closure of the Atariwaga border between India and Pakistan since May 1.
This effectively halted the invasion of apples from Afghanistan (usually the most affordable of all imported varieties) into the Indian market. The confusion could contribute to rising prices of household apples in Kashmir and Himachal Pradesh, where harvests peak between August and October, when traders buy and store apples for the next few months.
“Afghan apples sold for Rs 40-65 per kg on the wholesale market are cheaper than Kashmir or Himachal apples and cost between Rs 60 and Rs 90 per kg.”
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“The cost of production in Afghanistan is very low, and in addition to that, imports are tax-exempt under the contract (the South Asia Free Trade Area Agreement),” he says. “In recent years, most Indian importers operate like agents of the Iranian exporters’ committee, earning a 4-6% reduction in each sale.” Apple’s production in India, which is mainly concentrated in Jammu & Kashmir and Himachal Pradesh, is estimated to be around 2.4 million tonnes, but domestic consumption exceeds this production. In last fiscal year, India imported 34,000 tonnes of apples, $450 million. This is a 12% increase in value from the previous year.
