Kashmir's horticulture sector recorded sharp losses in 2025 following a combination of weather disruption, transport constraints, trade pressure and the continued absence of crop insurance. Grower organisations estimate losses at around INR 2000 crore, equivalent to about US$241 million, in a sector valued at roughly INR 15,000 crore, or about US$1.8 billion.
"We have estimated Rs 2000 crore losses this year," said Bashir Ahmad Basheer, president of the All Kashmir Fruit Growers Union. "Farmers who invested their life savings, took loans, and worked the entire year were left with no option but to sell at throwaway prices. Many could not even recover the cost of harvesting and packaging."
The sector supports around 3.5 million people and affects about 800,000 families directly or indirectly. Growers say the lack of crop insurance has increased exposure to risk. Although the Pradhan Mantri Fasal Bima Yojana and the Restructured Weather-Based Crop Insurance Scheme were adopted in Jammu and Kashmir in 2016, they have not been implemented for horticultural crops.
"Fruit growers in Kashmir have consistently urged the government to introduce crop insurance and a Minimum Support Price for apples, but both demands remain unfulfilled," said Shabir Ahmad, a grower representative from Shopian.
Officials cited high premium rates and limited insurer participation as reasons for delays. When bids were invited in November 2024, only two insurers applied for apple and saffron coverage. Premium quotes ranged from 15.15 percent to nearly 30 percent, after which the process was scrapped in May, leaving growers without coverage for another season.
Trade flows also affected returns. Growers pointed to free trade agreements and duty-free imports, including Iranian apples entering local markets via Afghanistan, which they say reduced prices before weather damage intensified losses.
Production was further affected by a prolonged dry spell, abnormal heat and heavy monsoon rains. Landslides blocked the Srinagar–Jammu National Highway for nearly a month during harvest, leaving trucks stranded. By the time fruit reached markets, quality had declined. The Mughal Road was unable to handle large-volume transport, increasing freight costs and delays.
Despite current losses, official data show longer-term growth. Between 2018/19 and 2023/24, fresh and dry fruit output in Jammu and Kashmir rose from 2.01 million tonnes to 2.64 million tonnes. Export earnings increased from INR 5010 crore, about US$604 million, in 2020/21 to INR 6369 crore, about US$768 million, in 2021/22.
Growers warned that without progress on insurance, infrastructure and market safeguards, repeated shocks could weaken production capacity in future seasons.
Source: Greater Kashmir
