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Time of India

Geopolitical winds set to sweeten India's apple harvest

Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel New Delhi: An apple a day - but at a price set by geopolitics. With Turkey Iran and Afghanistan emerging as the top three apple import sources for India, shifting geopolitical dynamics are expected to play an outsized role in shaping prices this harvest season, beginning in Delhi's Azadpur Fruit and Vegetable Market - arguably Asia's largest - traders may continue to steer clear of imports from Turkey, which was India's largest apple supplier last fiscal year with shipments worth $97 million. The reluctance stems from prevailing negative sentiment toward Ankara over its active support for Islamabad during the recent India-Pakistan conflict, two traders have told the challenge is the continued closure of the Attari-Wagah border between India and Pakistan since May has effectively halted the entry of apples from Afghanistan - typically the most affordable among all imported varieties - into the Indian market. The disruption may contribute to a rise in prices of domestic apples from Kashmir and Himachal Pradesh, whose harvest peaks between August and October, when traders will buy and store the apples for the months to come."Apples from Afghanistan, which are sold for Rs 40-65 per kg in the wholesale market, are cheaper than Kashmir or Himachal apples, which cost between Rs 60 and Rs 90 per kg," says Pawan Chhabra, fruit merchant and owner of Adarsh Fruits.'Production costs in Afghanistan are extremely low, and on top of that, the imports are duty-free under an agreement (South Asia Free Trade Area agreement),' he says, adding that he won't be surprised if the cost of domestic apples rises in the upcoming season.'While the conflict in Iran has paused for now, many importers remain cautious about sourcing Iranian apples due to the high risks involved,' says another fruit importer, requesting anonymity. 'In recent years, most Indian importers have operated more like commission agents for Iranian exporters, earning a cut of 4-6% on each sale.'While apple production in India — primarily concentrated in Jammu & Kashmir and Himachal Pradesh — is estimated at around 2.4 million metric tonnes, domestic consumption exceeds this output. Just last financial year, India imported 34,000 tonnes of apples valued at $450 million, a 12% year-on-year rise in terms of value.