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APPLE

1. INTRODUCTION

Apple (Malus pumila) is commercially the most important temperate fruit and is fourth among
the most widely produced fruits in the world after banana, orange and grape. China is the
largest apple producing country in the world.

2. OBJECTIVE

The main objective of this report is to present a bankable one-acre model for high quality
commercial cultivation of the crop.

3. BACKGROUND

3.1 Origin

Apples originated in the Middle East more than 4000 years ago. Spreading across Europe to
France, the fruit arrived in England at around the time of the Norman conquest in 1066.

3.2 Area & Production

The area under apple cultivation in India increased by 24% from 1.95 lakh ha. in 1991-92 to
2.42 lakh ha. in 2001-02 although production increased by less than 1% (i.e. from 11 to 12
lakh tones). It is mostly grown in the states of Jammu & Kashmir, Himachal Pradesh,
Uttaranchal, Arunachal Pradesh and Nagaland.(Vide Table-1)
J&K has remained the leading apple producer accounting for 60% of the total production in
the country. In HP also, apple is the most important crop accounting for about 90% of the
total horticultural production. These two States accounted for 76% of the area and 94% of
the production of the crop in the country in 2001-02 (vide Table-I).

Table 1 : State-wise Area, Production & Productivity of


Apple during 2001-02

State Area Production Productivity


(‘000 Ha.) (‘000 MT) (MT/Ha.)
Jammu & Kashmir 90.1 909.6 10.1

Himachal Pradesh 92.8 180.6 1.9

Uttaranchal 51.8 59.3 1.1


Arunachal Pradesh 6.7 8.5 1.3
Nagaland 0.1 0.3 3.3
All India 241.6 1158.3 4.8

Source : Database of National Horticulture Board, Ministry of Agriculture ,


Govt. of India.

3.3 Economic Importance

Apples are mostly consumed fresh but a small part of the production is processed in to juices,
jellies, canned slices and other items.

4. MARKET ANALYSIS AND STRATEGY

4.1 Demand and Supply patterns

India’s share in the total world apple production is merely 2.05 per cent. Only around 1.6% of
the country’s production gets exported.

4.2 Import/Export trends

The trend in export of apple from India during the period 1999-2000 to 2001-02 is given in Graph
3.

Table-2 : Country-wise export


of apple from India during 2001-02.

Country Quantity Value


(Tonnes) (Rs. in
lakhs)
Bangladesh 19234.67 1320.37
Bahrain 0.50 0.11
Kuwait 20.00 8.10
Sri Lanka 21.00 2.07
Maldives 0.10 0.02
Malaysia 4.75 2.43
Saudi Arabia 13.93 5.65
Singapore 0.56 0.41
U.A.E. 0.50 0.13
Total 19296.01 1339.29
Source : APEDA, New Delhi
4.3 Analysis and Future Strategy
An agri-export zone has been established in Himachal Pradesh covering the districts of
Shimla, Siramour, Kullu, Mandi, Chamba and Kinnaur considering the vast potential for
increasing exports. Initial targets are for exporting apples to neighbouring countries as well as
to west Asia and to the south-east Asian countries. With increase in production of apples in
the State, the State government is taking effective steps for its marketing besides providing
packing material, transportation, ensuring adequate procurement of apples under Market
Intervention Scheme, so that the growers get remunerative prices in the markets.

Arunachal Pradesh is one of the ideal locations for apple cultivation. If high yielding varieties
of apple are introduced in the state it can make a big headway by exporting the produce to
Bangladesh which presently depends on Bhutan besides meeting the internal demand of the
northeastern markets.

Efforts are being made by the NHB and the State Govts. for imparting modern technologies to
the growers in apple producing states.

5 PRODUCTION TECHNOLOGY

5.1 Agro-climatic requirements

Apple can be grown at altitudes 1,500-2,700 m. above m.s.l. in the Himalayan range which
experience 1,000-1,500 hours of chilling (the no. of hours during which temperature remains
at or below 70 C during the winter season). The temperature during the growing season is
around 21-240 C. For optimum growth and fruiting, apple trees need 100-125 cm. of annual
rainfall, evenly distributed during the growing season. Excessive rains and fog near the fruit
maturity period result in poor fruit quality with improper colour development and fungal spots
on its surface. Areas exposed to high velocity of winds are not desirable for apple cultivation.

Loamy soils, rich in organic matter with pH 5.5 to 6.5 and having proper drainage and aeration
are suitable for cultivation.

5.2 Growing and Potential Belts

Dry temperate areas are suitable for apple cultivation. The fruits produced in these areas are
of high quality with high sugar content and long shelf life.

The state-wise growing belts are given in the following :

State Growing belts


Jammu & Kashmir Srinagar, Budgam, Pulwama, Anatnag, Baramullah, Kupwara
Himachal Pradesh Shimla, Kullu, Sirmour, Mandi, Chamba, Kinnaur
Uttaranchal Almora, Pithoragarh, Tehri Garhwal, Uttarkashi, Chamoli,
Dehradun, Nainital
Arunachal Pradesh Tawang, West Kanneng, Lower Subansiri

5.3 Varieties Cultivated


Important varieties cultivated in different states of India are given below :

Category Varieties
Clonal rootstocks - M 9, M 26, M7, MM 106, MM 11
Scab resistant - Prima, Priscilla, Sir Prize, Jonafree, Florina, Macfree, Nova Easy
Grow, Coop 12, Coop 13 (Redfree), Nova Mac, Liberty,
Freedom, Firdous, Shireen
Hybrids - Lal Ambri (Red Delicious x Ambri), Sunehari (Ambri x Golden
Delicious), Chaubattia Princess, Chaubattia Anupam (Early
Shanburry x Red Delicious), Ambred (Red Delicious x Ambri),
Ambrich (Richared x Ambri), Ambroyal (Starking Delicious x
Ambri)
Low Chilling - Michal, Schlomit, Anna, Tamma, Vered, Neomi, Tropical Beauty,
Parlin’s Beauty
Pollinizing - Tydeman’s Early, Red Gold, Golden Delicious, Mc Intosh, Lord
Lambourne, Winter Banana, Granny Smith, Starkspur Golden,
Golden Spur

5.4 Land Preparation

For establishment of new apple orchard, proper layout of the proposed area is very essential.

5.5 Planting

5.5.1 Planting Material

The budding and tongue grafting methods are commonly used for propagation of apple. The
planting material should be purchased only from the registered nurseries and proper care
should be taken during transportation of the same.

5.5.2 Planting season

Planting is usually done in the month of January and February.

5.5.3 Spacing

The average number of plants in an area of one ha. can range between 200 to 1250. Four
different categories of planting density are followed viz. low (less than 250 plants/ha.),
moderate (250-500 plants/ha.), high (500-1250 plants/ha.) and ultra high density (more than
1250 plants /ha.). The combination of rootstock and scion variety determines the plant
spacing and planting density/unit area.

5.5.4 Planting Method


Square or hexagonal system of planting is followed in the valleys whereas contour method is
usually followed on the slopes. Plantation of pollinator species in between the main species is
essential for proper fruit setting. For establishment of an orchard having Royal Delicious
variety, plantation of Red Delicious and Golden Delicious as pollinators is recommended by
the Horticulture Department. In the month of October-November, pits of size 1x1x1 m. are
prepared for planting. In each pit, 30-40 kg. of FYM, 500 g. of Single super phosphate and 50
g. of Malathion dust are added after mixing properly. After about a month the planting is done.
One irrigation should be provided immediately after planting.

5.6 Nutrition

Farmyard manure @ 10 kg./ year age of tree is applied along with other fertilizers. The ratio
of N, P and K which is applied in an orchard of optimal fertility is 70:35:70 g./year (age of the
tree). After 10 years of age, the dose is stabilized at 700:350:700 g. of N, P and K /year. The
standard fertilizer dose of N, P and K in an “off” year (when the crop load is low) is 500 g.,
250g. and 400 g. respectively. On some trees deficiency of zinc, boron, manganese and
calcium may be observed which is corrected with the application of appropriate chemicals
through foliage spray.

5.7 Irrigation

The water requirement of apple is 114 cm. per annum which can be scheduled in 15-20
irrigations. In summer, irrigation is provided at an interval of 7-10 days while in winter it is
given at an interval of 3-4 weeks. At least 8 irrigations are to be provided during critical period
(April-August) i.e. main requirement after fruit set.

5.8 Training & pruning

Timely pruning and training operation is essential for proper growth and good productivity. The
plants are trained according to growth habit and vigour of the rootstocks. The standard trees
are trained on modified central leader system so that plants receive proper light. This
improves fruit colour and also minimises the effect of heavy snowfall and hail. Spindle bush
system is suitable for high density planting under mid hill conditions.

Pruning is essential to maintain a proper balance between vegetative growth and spur
development. Proper pruning of weak and undesirable branches/twigs is necessary after six
years of plantation.

5.9 Intercultural Operations

Application of glyphosate @ 800 ml./ha. or Gammaxone /Paraquat (0.5% ) as post emergence


herbicide suppresses weed growth for 4-5 months.

5.10 Mulching
Mulching with hay or black alkathene is found to be effective in controlling the weeds in cool
climates and also in conserving moisture. Use of dry grass or oak leaves has also been
found to be effective in conserving soil moisture.

5.11 Inter-cropping

Green manuring crops viz. sunflower and bean may be cultivated in the early years of
plantation in order to improve soil texture and nutrient status of soil.

5.12 Growth regulators

Use of growth hormones is essential for good flowering and proper colouration in fruits. Heavy
bearing in apple usually results in small-sized, poor quality fruits and sets in alternate bearing
cycle. Fruit thinning is essential in pollinizing varieties for regulating adequate cross-
pollination. Chemicals like carbaryl or Sevin @ 750-1000 ppm. or NAA @ 10-20 ppm. at petal
fall may be applied for the purpose.

5.13 Plant Protection Measures

5.13.1 Insect Pests

The insect pests mostly observed are San Jose Scale (Quadraspidiotus perniciosus), white
scale (Pseudoulacaspis sp.), wooly apple aphid (Eriosoma lanigerum), blossom thrips (Thrips
rhopalantennalis) etc. Planting of resistant rootstocks, suitable intercultural operations and
spraying with chloropyriphos, fenitrothion, carbaryl etc. have been found to be effective in
controlling the pests.

5.13.2 Diseases

The main diseases reported are collar rot (Phytophthora cactorum), apple scab (Venturia
inaequalis), sclerotius blight (Sclerotium rolfsii), crown gall (Agrobacterium tumefaciens),
cankers, die-back diseases etc. Plants resistant to the diseases should be used for cultivation.
The infected plant parts need to be destroyed. Application of copper oxychloride,
carbendazim, mancozeb and other fungicides have been found to be effective in controlling
the diseases.

5.13.3 Disorders

In apple, there are three distinct fruit drops, i) early drop resulting from unpollinated or
unfertilized blossoms, ii) June drop (due to moisture stress and fruit competition) and iii) Pre-
harvest drop. Pre-harvest drop can be controlled by spraying NAA @ 10 ppm. (1 ml. of Planofix
dissolved in 4.5 l. of water) about a week before the expected drop.

5.14 Harvesting and Yield

The orchard start bearing from eighth year and the economic life of an apple tree exceeds 30
years. From eighth to seventeenth year, productivity goes on increasing and thereafter
remains constant upto 30 years. The level of productivity varies form elevation to elevation.
Production stage extends upto even forty years depending upon agro-climatic condition.
Apple being a climacteric fruit, the maturity period does not coincide with ripening. The fruits
are usually harvested before they are fully ripe.

The average yield of different apple varieties in the state of Uttaranchal is very low (5-6
tonnes/ha.) as compared to that in Himachal Pradesh and Jammu & Kashmir which is around
11-13 tonnes/ha. (vide Table 1).

6 POST HARVEST MANAGEMENT

6.1 Pre-cooling

The fruits are placed in a cool and ventilated place to remove field heat before packing. Fruit
surface must be free from moisture before grading, wrapping or packing in cartons.

6.2 Grading

Grading of apples is done according to fruit size and fruit appearance or quality. On the basis
of fruit size, apples are graded manually in 6 grades. On the basis of fruit colour, shape, quality
and appearance, apple fruits can be graded in three or more quality grades. These grades are
designated as AAA, AA and A; A,B,C; or extra fancy, fancy class I and fancy class II.

6.3 Storage

Apples have a long storage life compared to other fruits and can be stored for a period of 4-8
months after harvesting. The fruits can be kept in cold storage at a temperature of about –
1.10 to 00 C and 85-90% relative humidity.

6.4 Packing

Apples are usually packed in wooden boxes having the capacity to accommodate about 10 or
20 kg. fruits. Corrugated fibre board cartons are also used for packing.

6.5 Transportation

Road transport by trucks is the most popular mode of transport due to easy approach from
orchards to the market.

6.6 Marketing

Marketing of the produce is mainly controlled by intermediaries like wholesalers and


commission agents. During years of good production, the wholesale prices in producing areas
slip down to un-remunerative levels.
7 TECHNOLOGY SOURCES

Major sources for technology are:

(i) Hill Campus, Ranichouri, G.B. Pant University of Agriculture and Technology,
Tehri Garhwal, Uttaranchal.
(ii) Department of Horticulture and Food Processing, Udhyan Bhawan,
Chaubatia, Ranikhet, Almora-263651, Uttaranchal.

8 ECONOMICS OF A ONE ACRE MODEL

8.1 High quality commercial cultivation of crop by using high quality planting material and
drip irrigation leads to multiple benefits viz.

 Synchronized growth, flowering and harvesting;


 Reduction in variation of off-type and non-fruit plants;
 Improved fruit quality;

Costs & Returns

8.2 A one acre plantation of the crop is a highly viable proposition. The cost components
of such a model along with the basis for costing are exhibited in Annexures I & II. A
summary is given in the figure below. The project cost works out to Rs. 1.50 lakhs.

Project Cost: (Unit – One Acre)


(Amount in Rs.)
Sl. Component Proposed
No. Expenditure
1. Cultivation Expenses
(i) Cost of planting material 2500
(ii) Manures & fertilizers 7700
(iii) Insecticides & pesticides 3000
(iv) Land Preparation 4200
(v) Others, if any, (Power) 3600
Sub Total 21000
2. Irrigation
(i) Borewell 25000
(ii) SIP & Electrical Installation 25000
(iii) Others, if any -
Sub Total 50000
3. Cost of Drip/Sprinkler 20000
4. Infrastructure
(i) Store & Pump House 20000
(ii) Labour room 5000
(iii) Agriculture Equipments 10000
(iii) Others, if any, please specify
Sub Total 35000
5. Land Development
(i) Soil leveling 4000
(ii) Digging -
(iii) Fencing 20000
(iv) Others, if any, please specify -
Sub Total 24000
6. Land, if newly purchased (Please indicate the year)*
Grand Total 1,50,000.00
*Cost of newly purchased land will be limited to one-tenth of the total project cost

8.3 The major components of the model are:

 Land Development: (Rs. 4.0 thousand): This is the labour cost of shaping
and dressing the land site as well as layout of the orchard.
 Fencing (Rs. 20.0 thousand): It is necessary to guard the orchard by barbed
wire fencing to safeguard the valuable produce from animals and prevent
poaching. This is part cost of fencing in the first year.
 Irrigation Infra-structure (Rs. 50.0 thousand): For effective working with drip
irrigation system, it is necessary to install a bore well with diesel/electric
pumpset and motor. This is part cost of irrigation infrastructure.
 Drip Irrigation & Fertigation System (Rs. 20.0 thousand): This is average cost
of one acre drip system for apple inclusive of the cost of fertigation
equipment. The actual cost will vary depending on location, plant population
and plot geometry.
 Equipment/Implements (Rs. 10.0 thousand): For investment on improved
manually operated essential implements a provision of another Rs. 10
thousand is included.
 Building and Storage (Rs. 25.0 thousand): A one acre orchard would require
minimally a labour shed and a store-cum grading/packing room & pump house.
 Cost of Cultivation (Rs. 21.0 thousand): Land preparation and planting
operations will involve 60 days of manual labour, the cost of which will come to
Rs. 4.20 thousand. The cost of planting material (250 plants per acre at 4 x 4
m) works out to Rs. 2.5 thousand i.e. 250 plants @ Rs. 10.0 per plant.

8.4 Labour cost has been put at an average of Rs. 70 per man-day. The actual cost will
vary from location to location depending upon minimum wage levels or prevailing wage
levels for skilled and unskilled labour.

Inter-cropping
Since the orchard would be start giving yield from 8th year onwards, it is proposed to
take up inter-cropping particularly off season vegetables which would cost RS. 10000/-
per acre and would yield on average 5 tonnes/acre.

8.5 Recurring Production Cost: Recurring production costs are exhibited in Annexure
III. The main components are planting material, land preparation, inputs application
(FYM, fertilizers, micro-nutrients liming material, plant protection chemicals etc.),
power and labour on application of inputs, inter-cultural and other farm operations.

8.6 Besides, provision is included for labour for harvesting and packing/transportation
charges for the produce to the nearest secondary market. The total production cost
for a one acre orchard works out to Rs. 174.05 thousand during the first seven
years. In the post-operative period i.e. from 8thyear onward, the annual recurring cost
ranges from Rs.22.00 thousand to Rs.25.30 thousand, at which level it stabilizes.

8.7 Returns from the Project: The yield from the plantation is obtained from eighth year
onwards. The yield goes up from 3 tonnes per acre to 6 tonnes per acre. Valued at
Rs. 11000 per tonne, the return goes up from Rs. 33 thousand to Rs. 66 thousand (Vide
Annexure-III).

Project Financing

8.8. Balance Sheet: The projected balance sheet of the model is given at Annexure
IV. There would be three sources of financing the project as below:

Source Rs. Thousand

Farmer’s
share 75.0 Subsidy
30.0
Term
loan 45.0 Total
150.0

8.9. Profit & Loss Account: The cash flow statement may be seen in Annexure
V. Annexure VI projects the profit and loss account of the model. Gross profit goes
up from Rs. 11.0 thousand in year 8 to Rs. 40.7 thousand in year eleven.

8.10. Repayment of Term Loan: The term loan will be repaid in eleven 6 monthly
installments with a moratorium of 90 months. The rate of interest would have to be
negotiated with the financing bank. It has been put at 12% in the model
(vide Annexures VII A & B).

8.11. Annexure VIII gives depreciation calculations.

Project Viability:
8.12. IRR/BCR: The viability of the project is assessed in Annexure IX. The IRR works
out to 23 and the BCR to 1.6.

8.13. The Debt Service coverage ratio calculations are presented in Annexure X. The
average DSCR works out to 3.09.

8.14. Payback Period: On the basis of costs and returns of the model, the pay back period
is estimated at 6.6 years (vide Annexure XI).

8.15. Break-even Point: The break even point will be reached in the 3rd year. At this point
fixed cost would work out to 63.1% of gross sales (vide Annexure XII).

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