The Hindu Business Line : Apple prices shoot up on output slide

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Chennai Feb. 15 Last year, a box of 20 kg apples in Chennai wholesale market cost Rs 925. Today, it rules between Rs 1,600 and Rs 1,700. Not surprisingly, its rise in the wholesale price index (WPI) between January 6 last year and January 27 this year has been nearly 40 per cent. Apple prices are seven times the price levels seen in 1993.

Orange is the only other fruit that has witnessed such a surge since 1993, but the rise in apple prices during the last 13 months has been rather sharp.

In comparison, the price of fresh coconut has increased 1.3 times during the period, while rates of cauliflower or green peas have just about doubled.

The prices have surged in the last 13 months mainly on decline in output.

Production has taken a hit as the crop in Himachal Pradesh was affected due to adverse weather, particularly monsoon rains, last year.

Himachal Pradesh's apple production is around five lakh tonnes of the country's 17 lakh tonnes plus output.

According to reports from Shimla, at least 40 per cent of the crop in the State was affected last year.

In 2005-06, production was estimated at 18.41 lakh tonnes, with cultivation spread over 2.35 lakh hectares.

This is against an estimated production of 17.39 lakh tonnes the previous year from 2.30 lakh hectares.

Jammu and Kashmir produces over 50 per cent of the apples in the country, but internal tension has prevented the State from realising its full potential.

The rise in apple prices is despite imports increasing in the last few years.

Imports of fresh apples during April-December this fiscal registered 22 per cent growth, with shipments totalling 29,707 units (of 20 kg boxes) against 26,248 units in the same period a year ago.

In terms of foreign exchange outflow, the figure was Rs 88.19 crore (Rs 72.39 crore), according to the Commerce Ministry.

According to the Ministry of Statistics, Planning and Implementation, apple consumption in the country is rising due to increased disposable income and value addition in the form of juices and other eatables.

This accounts for the prices rising despite production rising from around 15 lakh tonnes in 2003-04.

More Stories on : Horticulture/Fruits & Vegetables

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