NAFED’s exit from apple buying leaves J&K growers exposed to market prices
NAFED procured 15,769 tonnes of apples worth ₹70.45 crore by January 28, 2020. Although the scheme was extended for 2020-21 with a procurement ceiling of 12 lakh tonnes, NAFED no longer buys under it, leaving growers more exposed to private-market prices.
The development
NAFED no longer buys under the Market Intervention Scheme, leaving J&K apple growers exposed to private-market prices; it had procured 15,769 tonnes worth ₹70.45 crore by January 28, 2020. The scheme’s 2020-21 extension allowed procurement of up to 12 lakh tonnes.
The numbers
- September 2019
- August 5
- January 28, 2020
- 15,769 tonnes
- ₹70.45 crore
- 2020-21
- 12 lakh tonnes
- ₹2,500-crore
- 50:50
- around 20 lakh tonnes
Why it matters to operators and investors
Explore grower-aggregation, storage, or forward-contract partnerships in J&K to help stabilize sourcing as procurement shifts back to private markets.
What to watch next
- Official confirmation that NAFED procurement remains inactive, or announcement of a replacement scheme.
- J&K harvest volumes, mandi arrivals, and farm-gate prices during the next season.
- Changes in cold-storage capacity, warehouse releases, and trader or aggregator participation.
- Retail-grade availability and price spreads between J&K apples, other domestic origins, and imports.
- Diversify procurement across J&K growers, aggregators, and other apple-growing regions to reduce dependence on spot mandi supply.
- Explore seasonal forward contracts with transparent grade and price terms, while retaining spot buying to capture harvest-time softness.
- Review cold-storage capacity and quality controls so lower-cost peak-season purchases can be carried without excess shrinkage.
- Stress-test apple margins against both a harvest-time price glut and higher off-season prices.
The counter-case
The signal may overstate the impact of NAFED’s withdrawal. A procurement ceiling is not a guarantee that the full quantity would be bought, and the reported 15,769 tonnes may have represented only a small share of the apple crop. Growers’ exposure to private prices therefore may not have changed substantially.