Market fluctuations, packaging changes keep growers on toes

The apple season is closing, marked by significant shifts, including the introduction of a “universal carton” for apple packaging. This one-piece box, replacing the two-piece telescopic carton, limits the fruit weight to 22-24 kg per box, a change aimed at preventing the losses smaller growers often suffered with the old cartons, which could hold up to 34-35 kg.

At the season’s start, the universal carton, a government-backed initiative demanded by most growers, was well-received. However, as prices dropped mid-September to mid-October, some growers resorted to over-packing by lifting the carton’s flaps to increase weight, undermining the original purpose of the standard packaging.

This practice, intended to maintain profits amid price drops, led to mutual finger-pointing between growers, commission agents and buyers. Each group cited different reasons for the overpacking: growers claimed it was at the behest of agents and buyers, while the latter argued growers were doing it to cut costs on packaging and transportation.

Most apples — an estimated 70-80% — are packed at designated facilities, where owners of grading and packaging lines also pushed growers to over-pack, claiming it met market demand. This practice compromised the government’s intention to mandate sales by weight, particularly since no stringent checks were enforced. The government didn’t implement regulations on transportation of apples to mandis outside the state in telescopic cartons, nor did it ensure freight charges based on weight. The government authorities, however, believe that the gradual acceptance of universal cartons across stakeholders is more important than strict enforcement at this stage.

A major issue growers faced was market price volatility. Early in the season, when markets had fewer apples, early sellers saw prices reach Rs 4,000-5,000 per box. But as more fruit, especially from higher altitudes, entered the market around August 25, prices dropped to Rs 2,500-3,000 for premium-quality apples. By mid-September, prices plunged further, ranging between Rs 800-1,600 per box, with only top-quality produce exceeding Rs 1,600. This drop, despite lower production and good quality, frustrated growers, who attributed the slump to market manipulation.

Growers suggest the government should strengthen the role of the HPMC, an agency founded in the 1970s to support apple growers with marketing and post-harvest services. Equipped with cold storage, grading, and packing facilities, the HPMC could stabilise prices by counteracting market exploitation, thus going beyond its current limited role of processing culled apples.

Meanwhile, commission agents and buyers cited the influx of cheaper Iranian apples into Indian markets, often via Afghanistan, along with the beginning of Kashmir’s harvest season, as causes for the price drop. If such factors persist, growers in high-altitude areas—whose apples hit the market in September—could face recurring price challenges. Local growers hope for government intervention to raise import duties or set a higher minimum import price to protect their market against cheaper imported apples, which would enable them to compete more effectively.

Key takeaways

• Universal carton introduction succeeded in capping fruit weight at 22-24 kg, benefiting small growers
• Over-packaging remained a concern, with growers blaming commission agents and buyers
• The government failed to enforce weight-based sales and freight charges
• Extreme price fluctuations disappointed growers, with prices crashing from Rs 4,000-5,000 to Rs 800-1,600 per box
• Growers attribute price crash to market manipulation and cheaper Iranian apple imports