Context

Jammu and Kashmir Governor, Satya Pal Malik launched market intervention scheme for apples of J&K.

About

• Kashmir’s apple is battling to get exported outside the State this year due to shutdown and suspected militants campaigning against the fruit’s export.
• In the absence of MSP like scheme for apples J&K Govt. plans to procure 12 lakh metric tonnes worth of 8,000 crores under market intervention scheme with the help of the National Agriculture Cooperative Marketing Federation of India (NAFED).It makes 60% of the estimated annual apple production.
• It has been approved by the Department of Agriculture and Cooperation, Union Ministry of Agricultureunder the aegis of Ministry of Home Affairs, for the current apple harvesting season.
• In J&K, the scheme will be implemented by the Directorate of Planning and Marketing, supported by the Directorate of Horticulture (Kashmir) and Jammu and Kashmir Horticultural Produce, Marketing and Processing Corporation Ltd.
• Kashmir produced 20 lakh metric tonnes of apple in 2018, contributing 73% to the total apple production of the country.
• The period of procurement would be for six months, starting September, at a cost of ?8,000 crore.
• Apples to be bought from the doorsteps of the orchardists. Direct payment will be made to their account. Transportation will be the job of the procurer only
• The government has set up mandis for the scheme at Srinagar’s Parimpora, Baramulla’sSopore, Shopian and Anantnag’sBotengu.

Significance

• It would help stabilize the price of apples and help maintain a uniform rate in the open market across the country, after India raised tariffs on apple imports from the United States earlier this year.
• It will provide the much needed support to the fruit growers in Jammu and Kashmir. Earlier, government failed to provide the required number of trucks for transportation of the apples.
• Ease and convenience for the farmers as apples will be procured and transported from the doorsteps of the farmers.
• It will help in building the necessary forwards and backward linkage in the apple industry in Jammu and Kashmir. The building of cold storages will also receive the necessary attention in the region.

NAFED National Agricultural Cooperative Marketing Federation of India Ltd.(NAFED) was established in 1958. NAFED is registered under the Multi State Co-operative Societies Act. NAFED was setup with the object to promote Co-operative marketing of agricultural produce to benefit the farmers. Agricultural farmers are the main members of NAFED, who have the authority to say in the form of members of the General Body in the working of NAFED. Objectives: The objectives of the NAFED shall be to organize, promote and develop marketing, processing and storage of agricultural, horticultural and forest produce, distribution of agricultural machinery, implements and other inputs, undertake inter-state, import and export trade, wholesale or retail as the case may be and to act and assist for technical advice in agricultural, production for the promotion and the working of its members, partners, associates and cooperative marketing, processing and supply societies in India.

Challenges

• This trade was always in private hands and the government is procuring and transporting it for the first time. NAFED has not procured and transported a single kilogram of Apple till now and a very short preparation time is a big challenge. It leaves NAFED with hardly much time to undertake registration of growers, collecting their Aadhaarand bank account details for making direct benefit transfer payment. Ideally, this process should have happened at the time of flowering.
• Threat of militants to prevent the fruit growers from selling their harvest to the government.