Negative impactCommodity
From safety net to market risk: J&K apple growers face greater price exposure
BusinessLine 1 hr ago·29 Sept 2026, 2:27 pm
The Jammu and Kashmir government has ended a long-standing scheme that previously guaranteed a minimum price for apple growers. Under this program, the state acted as a buyer of last resort, absorbing market risks and ensuring stable returns for farmers. Now that the scheme is being phased out, growers are forced to rely on private traders and open market sales to sell their produce.
This shift significantly increases the price exposure for apple growers. Without the safety net, they must now navigate volatile market conditions and competitive pricing pressures from private traders. The financial health of the apple sector is now more closely tied to external market forces rather than state guarantees.
Investors should monitor the pricing power of major agricultural companies operating in the region. As the sector moves from a protected environment to a competitive one, the ability of these firms to secure fair prices for farmers will be a key indicator of their long-term profitability and supply chain stability.
Excerpt from BusinessLine
The withdrawal of the Market Intervention Scheme has changed the way Jammu and Kashmir’s apple growers manage price risk, shifting the burden from an institutional procurement mechanism to the private market. With the National Agricultural Cooperative Marketing Federation of India (NAFED) no longer buying apples under…Read the original at BusinessLine
Key takeaways
- Category: Commodity.
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