Heavy rains threaten apple supply as prices stay elevated

Apple production to be affected by excess rains, supply chain issues

Heavy rains and landslides in Himachal Pradesh and neighbouring Jammu & Kashmir, which together produce more than 90 percent of India’s apples, have disrupted the supply chains and raised inflation risks.

Prices, which eased in August after rising around 20 percent for four months until July, are likely to stay elevated because of damage to the crop and transport woes, as swathes of roads have been washed away. Apple inflation had stayed in double digits for better part of the previous year, touching a high of 36.7 percent in December 2024.

“Incessant rains in the northwest parts of India, especially Himachal Pradesh and Jammu and Kashmir, will affect the apple crop. Supply-chain issues would also have a bearing on apple prices,” said Paras Jasrai, associate director, India Ratings and Research.

Jammu and Kashmir received 50 percent more rainfall over the past two weeks, while precipitation in Himachal Pradesh has been 30 percent higher. Himachal's average rainfall this monsoon season has been 44 percent above normal.

Apples are central to the farm economy of both Himachal and Jammu & Kashmir.

In Himachal, apples accounted for more than 25 percent of the crop output in FY24, while in J&K, the share was around 14 percent. Apple accounted for a tenth of Himachal’s total agricultural value added and 7 percent for J&K. For households dependent on horticulture, this disruption could mean a sharp income squeeze.