Last year, the company procured only 6,000 tonnes against the target of 18,000MT.
The hill state is one of India's major apple-producing regions, with more than 90 percent of the produce going to the domestic market. The apple industry is worth over INR2,000 crore.
The Horticulture Department estimates say that this season, the state is expected to produce 22-25 million boxes of 20 kg each against the last year's lean production of 14 million boxes.
Superior grades such as Royal Delicious, Red Chief, Super Chief, Oregon Spur and Scarlet Spur have started arriving in the market.
Traders in the Dhalli apple market near Shimla said that a 20kg box of top quality Royal Delicious fetches between INR1,600 and INR2,000 and its high-grade quality is sold for up to INR2,300 per box.
Likewise, Red Delicious fetched prices from INR1,200 to INR1,400 per box, while the earning was INR400 to INR1,000 for Red Golden and INR300 to INR550 for Golden.
Partap Chauhan, an apple supplier in Dhalli, said that in the last three days, apple prices had crashed massively.
"It is mainly due to the arrival of the crop in bulk. In Delhi's Azadpur market, the price (of all varieities) has come down by up to INR500 per box," he said.
Kinnauri apples, known across the world for their natural sweetness, colour and juiciness, will start arriving in the market by the end of September, said traders.
The chairman of Dhalli Apple Market Committee, Gian Singh Chandel, said that this year, only a few farmers were opting to sell their produce in the wholesale markets in Delhi and Chandigarh since they were getting good prices within the state.
According to the 2011-12 Economic Survey, the area under apple cultivation has increased from 400 hectares in 1950-51 to 101,485 hectares in 2010-11.