India's apple sector is entering a new phase as a proposed trade agreement with the United States coincides with rising imports and domestic structural constraints.
India produces about 2.5 million metric tons of apples annually. Jammu and Kashmir account for 70 to 75 per cent of output, Himachal Pradesh around 20 per cent, and Uttarakhand about 2 per cent. Smaller volumes are grown in Arunachal Pradesh and Nagaland. Nearly 50 lakh people in Jammu and Kashmir and about 5 lakh families in Himachal Pradesh depend on apple cultivation.
According to GTRI, India imported about 558,000 tons of apples in FY2025, equal to roughly 22 per cent of domestic production. In value terms, imports rose from US$9.9 million in 2004 to US$417.6 million in 2024.
"Despite strong domestic output, India imported about 558 thousand tons of apples in FY2025, equivalent to roughly 22% of domestic production. Import dependence has grown steadily. In value terms, apple imports have increased more than fortyfold over two decades -- from $9.9 million in 2004 to $417.6 million in 2024," said GTRI founder Ajay Srivastava.
India currently applies a 50 per cent import duty and a minimum import price of ₹50 (US$0.60) per kilogram. Based on FY2025 prices, landed costs at a 50 per cent duty are estimated at ₹77 (US$0.93) per kg for Iranian apples, ₹99 (US$1.19) for Turkish, ₹120 (US$1.45) for South African, ₹125 (US$1.51) for US, and ₹129 to ₹131 (US$1.56 to US$1.58) for New Zealand and Afghan fruit.
Under ongoing negotiations, tariffs on a limited quantity of US apples may be reduced to 25 per cent, with the minimum import price raised to ₹80 (US$0.97) per kg. At a 25 per cent duty, landed costs for US apples could fall from about ₹125 (US$1.51) per kg to ₹103.7 (US$1.25) per kg.
Domestic price formation reflects structural costs. Farm-gate prices range between ₹30 (US$0.36) and ₹60 (US$0.72) per kg. Wholesale prices reach ₹60 (US$0.72) to ₹120 (US$1.45) per kg, while retail prices range from ₹120 (US$1.45) to ₹220 (US$2.66) per kg. Post-harvest losses are estimated at 30 to 40 per cent due to logistics, grading, packaging, and transport from hill regions.
Productivity in Himachal Pradesh stands at about 7 to 8 tons per hectare, compared with 40 to 70 tons in leading producing countries.
Industry recommendations include maintaining import safeguards, preserving sanitary and phytosanitary inspections, expanding cold storage and pack-house capacity, upgrading rural transport infrastructure, and promoting high-density planting and improved varieties.
Imports already account for about one-fifth of domestic output, and further expansion may influence domestic market share, particularly in off-season and mid-premium segments.
Source: The Economic Times
