The discontinuation of the Market Intervention Scheme by NAFED has moved apple sales entirely to private traders. This shift leaves farmers without a guaranteed price floor for their 20 lakh tonnes of annual production, increasing the risk of price volatility.
The Kashmir apple industry is moving through a significant change after the National Agricultural Cooperative Marketing Federation of India (NAFED) discontinued its Market Intervention Scheme. For several years, this government-backed program acted as a crucial buyer for local produce, setting a price floor that helped farmers maintain income stability during regional disruptions. With this mechanism removed, growers must now sell their fruit exclusively to private wholesalers and local aggregators.
The removal of the price floor changes how produce is valued in the region, which typically produces around 20 lakh tonnes of apples annually. Under the old system, NAFED provided a consistent buyer for all grades of fruit, which helped prevent price crashes during periods of high supply. Now, farmers must navigate a private market where prices are determined by immediate demand, quality, and the bargaining power of individual sellers. Smaller farmers, who may lack the resources to transport their crop to distant markets, often have fewer options to negotiate better rates, making them more vulnerable to price drops.
For companies in the food and beverage sector that rely on apple-based inputs, such as concentrate manufacturers and jam producers, this shift could lead to more variable raw material costs. While private markets might offer faster transaction cycles, they often lack the rigorous grading and price transparency that NAFED enforced. Without a central agency to set a baseline price, the local trade is likely to see higher price swings throughout the harvest season.
Industry observers are now monitoring the current harvest cycle to gauge the impact on local market dynamics. A key factor to follow in the coming months will be the price trends in local wholesale mandis and the ability of private traders to manage large volumes. If the market continues to experience sharp price corrections, there may be pressure on local authorities to consider new support measures, such as improved cold chain infrastructure or direct-to-consumer logistics, to help farmers reduce their dependence on traditional middleman networks and improve their long-term price realization.