this presentation is all about the apple trade and future prospects for apple market in india

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