Geopolitical winds set to sweeten India's apple harvest

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 August.

At 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 ET.

Compounding the challenge is the continued closure of the Attari-Wagah border between India and Pakistan since May 1.


This 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.

Premium Segment may not be Hit
“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.

Turkey led the pack, followed by Iran (imports valued $90 million) and Afghanistan ($50 million).

Other key apple-exporting countries to India include South Africa, the US, New Zealand, Poland, Chile and Italy.

"Apples from Iran and Afghanistan are quite popular in India as they closely resemble domestic varieties in taste, colour and size,” says Amit Makin, co-founder of a leading fruit importing company, Gemtree Natural Produce. “What’s more, they’re affordable — Afghan apples, in particular, are sometimes significantly cheaper than those grown in Kashmir or Himachal Pradesh.”

However, Makin points out that any disruption in supply chains from Iran or Afghanistan is unlikely to impact the premium apple segment, which caters to high-end markets across Indian cities.

Currently, New Zealand apples — considered the most premium and expensive in India — are selling at Rs 4,500-4,700 per 18 kg box at the Azadpur’s wholesale market. Washington apples from the US are priced around Rs 4,200 for a 20 kg box.

In Delhi’s retail markets, New Zealand apples are selling at Rs 300 per kg and above.

“There’s one more catch,” adds another Delhi-based importer. “We don’t yet know the outcome of ongoing negotiations for a bilateral trade agreement with the US. But if New Delhi offers tariff concessions on agricultural products — and apples from the US are granted zero duty — Washington apples could soon compete directly with India’s own premium varieties.”

In FY25, India imported apples worth $33 million from the US, registering a 58% year-on-year growth.