Falling demand in north Indian markets, following currency shortage, has nearly crushed pineapple farming. At Vazhakulam in central Kerala, which is country’s source-hub of the high-grade Mauritius variety of pineapple, the price has dropped from R35 per kg to R15 per kg.

“Ironically, 2016 was seen as a golden year for pineapple with the Centre’s budgetary policy announcement of 100% FDI in fruit processing as it was expected to rev up the value-chain. The pile-up of fruits in the market has dashed all hopes,” Jose Kalappura, president, Pineapple Farmers’ Association, told FE. Turnover from the pineapple trade, according to merchants, has thinned to nearly a third, not just in Kerala, but other producing states too.

The policy proposition of opening up of investment opportunities in fruit-processing had sent more optimistic Kerala farmers to venture into pineapple cultivation. The target had been that the present 7,000 tonnes of pineapple brought by the processing industry in Maharastra, UP and Delhi could be multiplied to 50,000 tonnes. Kerala accounts for 70% of output, followed by Tripura, West Bengal and Nagaland.

Out of the 3.25 lakh tonnes of pineapple annually produced in Kerala, very little is of kew variety which is a late-maturing type. On the contrary, the Mauritius variety that the state produces commands huge demand from the connoisseurs in processing factories for flavour, colour and lushness. In 2009, the Vazhakulam pineapple had also got the geographical indication) tag.

In 2014, there were days when pineapple from Vazhakulam fetched R50 per kg, says Noble John, former president, Pineapple Farmers’ Association. A state-supported company NAPCL (Nadukkara Agro Processing) had even initiated exports of processed products like pineapple concetrate to West Asian market.

However, weak monsoon last year had pummelled down the current season’s harvest to just 2.5 lakh tonnes. On November 8, the pineapple price was R32 per kg and was expected to climb to cross R40 per kg, in tune with the wedding season in Maharashtra and Delhi.

However, due to shortage in currency, transporters withdrew from the contracts to carry the pineapples to buyers in Maharashtra and Delhi markets.The number of trucks carrying pineapple from Vazhakkulam wholesale market to North India has fallen from 120 trucks per day to 50 trucks.