India produces around 2 million tons of apples annually but growth has been slow and yields are low due to old orchards and cultivars. Consumption growth has also been slow despite rising incomes because high apple prices reduce demand. Apple imports are small but rising, with the U.S. holding the largest share of the competitive import market. Seasonal factors influence trade. China poses a threat to U.S. exports to India as the world's largest apple producer with lower prices and extended supply periods. High tariffs and marketing margins present barriers for increasing imports to India's emerging apple market.

1. Prospects
for
India’s Emerging
Apple Market

2. Apple production
 Average production=1.98 million tonn(7th
largest
producer)2008-2009 in 274,000 hectare. (source:
NHB Database 2009)
 Production characterized by slow growth and low
yield
 Most orchard and cultivars are old

4. Source :NHB Database2009,National Horticulture Board

6. 1.35
kg/year
•Slow consumption growth rate
despite raising income

7.  High Apple prices reduce demand
•Income and price responsiveness of Apple
demand

8. Apple Trade
 Apple imports small but rising.
 U.S. apple holds largest share of a
competitive market.
 Seasonal factors influence trade

9.  Apple tariff high relative to other fruit

10.  Non tariff measures affecting trade
 Measures of protection for Indian apple
 Quality and price creates separate market for
domestic and imported apples
….

11. Seasonal factors influence trade

12. United states 19501 MT (33.3%)
China 18858 MT (32.3%)
Chile 14873 MT (25.5%)
New Zealand 3762 MT (6.4%)
Australia 1039 MT (1.7%)
Italy 156 MT (0.26%)
Others 213 MT (0.36%)
Total 58402 MT
India’s total import and share of exporter
(2007) IN METRIC TON
SOURCE: FAOSTAT 2007

13. China is a potential competitor of U.S.
in apple export to India
 Worlds largest producer of apple
(29.85 million ton 2008-09),
NHB database,2009
 Price competitiveness
 Sweet tasted Fuji variety getting popularity
 Large exportable surplus
 Extended supply period (Nov.-July)
 Fruits packed in individual styrofoam packing
Fuji variety
Washington red

14. Apple marketing
 Grower price risk impedes market
improvement
 Post harvest handling practices are poor
 Wholesale price formation
 Domestic market poorly integrated
 Retail prices of domestic and imported
apples
 Lack of investment for domestic apples

16. Conclusion
 Expanding high middle class consumers will
be potential customer of imported apples
 Domestic produce is far behind the quality and
less competitive.
 High tariff rates with higher intermediaries
margin
 Phytosanitory requirements, pesticide residue,
food safety rules potential barrier for import

17.  China is a potential competitors of U.S.
(accounts 40% of the world production), source: FAO
website 10.2.2010
 Reduction in the marketing margins,
tariff , and import price are key concern
area for U.S.A’s apple export to India

19. Om Prakash Gupta
 PGDMA10-12
National Academy of Agricultural Research
Management
Hyderabad, India