Import fallout: Kashmir apples witness record 40% demand dip

Srinagar, Dec 25: Demand for Kashmiri apples in markets across the country has witnessed a decline of about 40 per cent in the last one month, resulting in corresponding dip in rates and widespread anxiety among apple growers here.

Apple trade analysts and fruit dealers Ziraat Times spoke to maintain that various varieties of Kashmir apples have witnessed a 40 to 50 per cent decline in demand during the last one month alone. Analysts attribute the demand decline mainly to the ‘large-scale imports and dumping of apples’ from Iran, which, they maintain, are being flooded into Indian markets via Afghanistan.

Presently, India and Afghanistan have a trade pact by virtue of which fruits produced from Afghanistan is not charged any taxes in India on arrival. Kashmiri traders based in Delhi told Ziraat Times that many fruit dealers are currently using this link to import Iranian apples, ‘branding them as Afghan produce and selling them in Indian markets.’

According to Ministry of Commerce data, during fiscal year 2020, India’s total apple production was 2.7 million metric tons, while the demand was much higher than that. Kashmir accounts for the bulk of the overall production in the country. According to the Horticulture Department, Kashmir recorded 20.35 lac MTs fruit production in 2020-21, out of which apple production is about 80-90% of the total production.

While Kashmir’s fruit growers do acknowledge the need for apple imports to bridge the gap between the production and the demand, what they disapprove of is the system of dumping apple imports with any duties, which, they believe, erodes cost competitiveness of Kashmir’s apples.

President, Kashmir Fruit Growers Dealers Union, Bashir Ahmad Basheer said that the Iranian apples have flooded Indian markets like never before, by-passing import duties and other taxes.

“Due to dumping of imported apples in the markets across the country, demand for Kashmiri apples is down by 40 percent, rates have come down drastically, causing losses to the farmers. There is a dip of 40 to 50 percent in apple prices in comparison to last year”, Mr Basheer said.

“Close to 1 crore apple boxes are lying unsold in Kashmir.  We have taken up the issue with the government, urging them to impose the normal duties on Iranian apples. With the tax-free agreement between India and Afghanistan, these apples reach India at a low price, which is a disadvantage for us”, he said.

Kashmir apple farmers are deeply worried about the debts they have, which, in normal circumstances, they are able to clear once their fruit is sold in the markets in the country. The situation is not bad in the mandis outside J&K but within J&K as well.

Farmers and Cold Storage (CA) Unit holders are worried that about 2 lakh metric tons of apple fruits stored in Kashmir’s privately-owned cold storages, in the hopes of fetching decent prices, are losing the race against time.

Izhan Javeed, CEO Fruit Master Pvt. Ltd told Ziraat Times that this situation has resulted in CA stores being fully occupied as there is a low demand for apples in the market currently.

“Around 2 lakh metric tons of apple fruit is lying in the CA stores. With the market down in comparison to last year for large-scale duping of Iranian apples in the country’s markets, the situation is worrisome right now. Moreover, the overall apple production in Kashmir was also higher than the previous year”, said Mr Izhan.

Farmers and traders in Kashmir’s largest apple hub of Sopore report a sharper dip in demand and rates.

President, Sopore Fruit Mandi, Fayaz Ahmad alias Kakaji said, as per their analysis, this time the demand of Kashmiri apples was down by around 50 percent.

“Post Covid lockdown there is a slump in the market which is one factor, the major factor is influx of Iranian apples which are being preferred over Kashmiri apple for their lower prices, leading to losses to growers”, said Mr Fayaz, adding, “We have urged the government to impose taxes on Iranian apples so that it provides Kashmir growers a level playing field, but the central government is not listening to our pleas.”

The demand and price shock is being felt in other apple growing areas of Kashmir too, like Charar Sharif belt, which, traditionally, grow apples that do not need cold storage.

“There is hardly any demand for apples right now. Growers are incurring losses. Due to snow prediction last month, growers harvested crop from orchards and kept it in CA stores for which they have to pay hefty sums and when they go to sell their fruit they don’t even recover their costs, leave aside earning profits”, President, Fruit Growers Association Chrar-e-Sharief, Bashir Ahmad Baba said.

Apple growers in Shopian area of Kashmir, which has a huge apple production, are worried that in these circumstances they would not be able to recover their production costs and end up in debt.

“I will put it in simple words. This situation of dip in demand and prices has broken the back of orchardists”, Peer Shabir, spokesperson of Fruit Growers Association of Shopian told Ziraat Times.