Adani Agri Fresh has procured around 2,500 tonnes of apples from farmers since the apple buying season started in the last week of August 2021. According to a company spokesperson, they have received an overwhelming response from the farmers, as Adani Agri Fresh offers higher prices as compared to the mandis.
Adani Agri Fresh procures apples through ‘Controlled Environment Facilities’ in Shimla district and promotes it under the brand name ‘Farm-Pick’. The apple buying season started last week and will go on till the end of October. Farm-Pik has been receiving about 1,000 tonnes of apples every day as against 300 tonnes in the previous years.
Adani Agri Fresh Limited (AAFL), is a wholly-owned subsidiary of the Adani Group which has established a network of integrated storage, handling and transportation infrastructure for Apples in Himachal Pradesh. It has established a modern Controlled Atmosphere (CA) storage facilities at three locations, such as Rewali, Sainj, and Rohru in Shimla District.
The company also has a marketing network in major towns across India to cater to the needs of wholesale, retail and organized retail chain stores.
Since the company buys apples in kilos and sells in boxes, Farmers get higher prices as their returns are on every gram of apple as against the size of the box. This has forced mandis to increase their apple procurement prices as well. Prices of apples have been low this year.
AAFL entered the apple trade-in Himachal Pradesh about 15 years ago and contracted over 17,000 farmers from Shimla, Kinnaur, and Kullu valleys spread over 700 villages. The other advantage for apple farmers has been that unlike conventional auctioning in Mandis, AAFL announces its procurement price beforehand through a wide variety of communication mechanisms such as local dailies, SMS alerts, direct information through the Hub operators and direct calls to farmers. This mechanism empowers the farmers to take decisions on the price beforehand eliminating the need for middlemen and unreliable staggered cash transactions. They can sell their produce directly to the company get instant payments through online transfers.