This month's massive floods have caused a loss of Rs 1,000 crore to the apple crop in Kashmir, threatening a collapse of the horticulture industry in the state.Kashmir's apple crop worth Rs 1,000 crore has been destroyed, causing a financial ruin for growers and the risk of high prices for fruit consumers in the country, a report by the Associated Chambers of Commerce and Industry of India (Assocham) said.The worst-hit districts of Baramulla, Kupwara and Sopore are the largest producers of apple and extensive damage has been reported there.The picturesque Kashmir has suffered its worst floods in decades, with hundreds of thousands people stranded without access to food, clean water, electricity and phone networks.Entire neighbourhoods were submerged in swirling floodwaters when the Jhelum river breached its banks, causing a huge loss to property and business.More than half of the state's winter capital Srinagar was inundated."Horticultural production of the state contributes about 50 per cent of the Rs 2,000 crore agricultural production of the state involving 30 lakh people. Apple production accounts for 86 per cent by value of the state's horticultural output," the Assocham report said."Apple is the mainstay of Kashmir's economy with a turnover of Rs 1,200 crore a year and its production in the state has reached about 1.6 million metric tonnes annually," it pointed out.The sector also employs nearly 30,00,000 people directly and indirectly. Apple accounts for a lion's share of the state's fruit output and contributes about 10 per cent to its economy."Kashmir apples, known for their taste and juice, have already lost a huge market share to those grown in other north Indian states due to the low prices of the latter variety," said DS Rawat, secretary-general of Assocham."Kashmir apples are favourite not only in the domestic market but also abroad. With the supply line closed from Kashmir, the price of apple has already started shooting up and the ensuing Navratra season will see further jump by 40-45 per cent. As the supply from rest of the country will not be able to make up for the loss, dependence on imports will also increase," he said.Fruit Bowl of IndiaThe wholesale market organisers in Delhi are projecting more than 60 per cent fall in the quantity of apples from Kashmir in the entire season.Most families in Sopore in north Kashmir and Shopian in the south are involved in the cultivation of the fruit that flourishes in the hilly environment.Orchards in Kashmir Valley once known as the fruit bowl of India are full of fragrant apples but growers fear the disastrous year of business.The horticulture industry in Kashmir generates Rs 500-600 crore for the state exchequer annually, according to Assocham.Kashmiri apple varieties like the red, glistening "Firdous" and "Amri" have over the years become hugely popular world over, it said, adding India is the world's 11th largest apple producer.Though apple is the major fruit grown in Kashmir, other fruits like cherry, peach, apricots and pears are also grown on a large scale.Kashmir's apple and pear varieties are considered best in the world.While the fruit production in the Valley is around 15 to 17 lakh metric tonnes annually, the growers say Kashmir has a capability to produce 25-30 lakh tonnes every year.Jammu and Kashmir Chief Minister Omar Abdullah admitted the administration's response to the disaster was slow but said the government was overwhelmed by the scale of flooding.

Source - http://www.businessworld.in/