Apple crop predominates the horticulture sector of Himachal Pradesh, claiming about 48.92 per cent of the total area under fruit crops and about 82.53 per cent of the total fruit production (
Economic Survey, Himachal Pradesh 2022-2023)
. Within the state, Shimla districts alone contributes more than half of the production and over one third of the cultivated area, underscoring its central role in apple-based livelihoods. Despite its prominence, the apple sector faces persistent challenges related to productivity, marketing and supply chain inefficiencies. Past studies highlight issues such as poor quality seedlings, limited adoption of quality standards, post harvest losses and the dominance of marketing channels where intermediaries capture a large share of consumer expenditure (
Sharma and Guleria, 2020;
Getahun et al., 2018). While government initiatives such as subsidies, training programs and cold storage facilities have attempted to improve efficiency
(Sayin et al., 2009), growers continue to struggle with fragmented linkages, limited coordination and weak value chain integration. These problems show that supply chain management practices (SCMP) need to be improved to make them more efficient, competitive and profitable for growers.
However, the majority of existing research on apple cultivation in Himachal Pradesh has focused on production economics, marketing margins, or consumer perspectives on fruit quality (
Chanda, 2018;
Djekic et al., 2019). Relatively little attention has been given to a systematic analysis of supply chain management practices-such as supplier selection, information sharing and strategic partnerships-and their influence on the performance of apple growers. This creates a significant research gap in understanding how SCM theory can be applied to the horticulture sector in a regionally specific context.
The present study addresses this gap by evaluating the supply chain management practices of apple growers in Himachal Pradesh using a structured SCMP framework. By linking globally recognized SCM dimensions with field-based evidence from growers, this research not only positions apple cultivation within broader SCM theory but also contributes practical insights for policymakers and stakeholders. The novelty of this study lies in systematically connecting supply chain practices with grower performance outcomes, moving beyond descriptive analyses of marketing channels to a comprehensive assessment of supply chain efficiency.
Amgai et al. (2015) conducted a study on the marketing practices of apple farmers from two village development committees (VDC) namely Kobang and Tukuche of Western Nepal. The findings revealed that the pre-harvest contractual system was the primary selling method for apple crops in the Mustang district of Western Nepal. The major challenges for traders were identified as transportation and market information gaps in the Apple marketing process in the region.
Atreya and Kafle, (2016) examined that apple crop in the Jumla district is produced more than other crops due to its higher profitability but challenges like insect pests and market issues hinder optimal production and marketing. Also, limited supply due to storage constraints affects market fulfillment.
Khadka and Solberg, (2020) explored that the government of Nepal has supported farmers of apple crops in many ways such as by providing apple processing facilities, well-established wholesale markets, providing technical assistance in production and subsidizing saplings to poor and needy farmers. However, apple farmers have faced some basic issues like proper input supply of saplings from nurseries and, lack of knowledge about pollinating variety for improving yields. Also at the production level farmers have complained about apple disease and pests, no proper irrigation and no storage facility.
Shah, (2020) addressed major issues such as a lack of storage facilities, packaging material shortages, malpractices by commission agents, poor road infrastructure, labor shortages and insufficient processing centers
. Studies in Himachal Pradesh further reveal that amended APMC acts significantly shaped apple business structures and price realization, reinforcing the importance of market institutions in fruit supply chains (
Mustfa and Singh, 2017).
Somashekhar et al. (2014) identified that the development of information access and supply chain coordination could significantly benefit the agriculture sector by reducing post-harvest losses, lowering transaction costs and improving awareness. These two aspects of agriculture supply chain management can help solve food problems not only in India but globally as well.
Chanda (2021) reviewed Himachal Pradesh Government Policies, subsidies and their awareness among horticulturists. Various schemes like technological upgradation, manure and fertilizers, Kisan credit cards, training programs for orchardists, horticulture marketing, insurance, marketing intervention schemes,
etc. for apple growers lack proper implementation which is the cause of ignorance among growers related to these schemes. Also, high time consumption is the major reason among growers for not applying for subsidies like funds for nursery development, subsidy on horticulture equipment, pesticides, fertilizers, land development, irrigation facilities, anti-hail nets, grading machines,
etc.
Kireeti and Sharma, (2017) investigated that at the production level growers face problems like shortage of labour, lack of availability and knowledge of chemical fertilizers, plant protection chemicals and plant material, farm yard manure and irrigation problems. At the marketing level shortage of grading and packing labour, packing material, lack of storage facility, transportation of produce, marketing intelligence, malpractices in the market and market intervention schemes are faced by growers which need to be resolved by matching services with international standards provided by government agencies and private players.
Negi and Anand, (2015) investigated the issues and challenges of the supply chain of the fruits and vegetables sector in India. The study found that cold chain facilities, fragmented supply chain, linkages and integration between the partners, infrastructure facilities, farmer’s knowledge and awareness; quality and safety standards, transportation facilities, etc are factors that impose serious challenges for fruits and vegetables sectors. More recent estimates of post-harvest losses in Indian fruit chains confirm that systemic inefficiencies persist at the production, wholesale and retail nodes
(Pundir et al., 2025). Wani and Songara, (2019) examined the production and marketing efficiency of apple farming and various constraints found in these two functions. The findings revealed that shortage of labour, chemical fertilizers, plant protection chemicals, financial problems and lack of irrigation facilities are constraints in the production of apple crop and lack of grading, packing labor and packing material, lack of communication intelligence and storage facility, malpractices in the market, transport problem and market intervention scheme are constraints in the marketing of apple fruit.
Past research has highlighted two key challenges within Apple’s supply chain, the first pertains to Apple production and marketing, which needs to be addressed through the study of supplier selection parameters adopted by Apple growers to meet the need for inbound logistics. The selection of the right supplier for inbound logistics helps in the reduction of production-related issues. The second revolves around government policies and their implementation, particularly examining the institutional support offered by governments to apple growers across the supply chain. Understanding these challenges is crucial for improving the effectiveness of Apple’s supply chain. Further, this knowledge helped in conceptualizing the core of the study,
i.e. relationship between supplier selection criteria, institutional support and supply chain management practices.
Fig 1 shows a conceptual research framework projecting two predictor variables such as Supplier selection criteria and institutional support, whose effect on supply chain management practices is proposed to investigate. And the dimensions included under SCM practices are strategic partnership, customer relationship, information sharing, information quality and postponement. Every supply chain begins with the raw material supplier, which highlights the crucial role of inbound logistics in any supply chain, regardless of the industry. Concerning apple crops also, price, quality of raw material, reliability of the supplier, delivery of the raw materials, long-term relationship and confidence towards the supplier and personal relationship with the supplier, etc. highlights the various factors taken under consideration for a long-term relationship with the supplier. Institutional support refers to the different types of aid and facilities provided by Government or Agricultural agencies to apple growers such as dissemination of market information, fair market environment, regulated market practices, transactional transparency and availability of necessary support,
etc. Supply chain management practices (adopted from
Li et al., 2005) represent the different dimensions of the practices carried out by apple growers.
Need for study
The existing literature highlights the critical challenges within the apple supply chain, particularly concerning production, marketing and the impact of government policies on apple growers. These challenges include issues such as transportation, market information gaps, lack of storage facilities, malpractices by commission agents, shortage of labour, inadequate implementation of government schemes and subsidies,
etc. These multifaceted challenges necessitate a comprehensive study to delve into the interplay between supplier selection criteria, institutional support and supply chain management practices within the apple industry. The understanding of these dynamics is crucial for addressing inefficiencies, reducing post-harvest losses, enhancing market access and improving overall competitiveness within the apple supply chain in the Shimla district of the state of Himachal Pradesh.
Objectives of the study
The study was undertaken keeping in view the following objectives
1. To assess key determinants influencing apple farmers’ SCM practices in Shimla district of the state of Himachal Pradesh.
2. To analyze the impact of supplier selection criteria and institutional support on SCM practice in Shimla district of the state of Himachal Pradesh.
Hypothesis of the study
Based on the objectives of the present study, the following hypothesis has been formed
H
1: There is a significant interaction effect of supplier selection criteria and institutional support on supply chain management practices.
This hypothesis testing will help us to understand the relationship between supplier selection criteria and institutional support having a significant effect on supply chain management practices and to what extent these two predictors can anticipate the variations in the supply chain management practices
i.e. outcome variable adopted by Apple growers in the Shimla District of Himachal Pradesh.