Srinagar, June 28: The reduction of 20% import duty on Washington apples to India has ignited a wave of concern among apple growers of Kashmir and Himachal Pradesh.
Kashmir Valley Fruit Growers-cum-Dealers Union, Progressive Growers Association of Himachal Pradesh and Apple Growers Association, Kullu have demanded a reconsideration of this decision, fearing that their apple produce would not be able to compete with Washington apples in quality and prices.
A senior official at the Commerce Ministry told Ziraat Times that the import duty reduction from 70% to 50% on Wasington apples “would not have any impact on India apple growers and that the government does not intend to open a floodgate of apple imports to the country.”
“The decision to remove these additional duties was part of an agreement reached between India and the US, during the recent visit of Prime Minister Narendra Modi to Washington and New York. He also said that the decision is part of the larger agreement by which India will remove import duties on eight US products, including chickpeas, lentils and apples”, the official added.
In 2019, India imposed retaliatory duties on 28 US products after the US imposed an import duty of 25% on steel products and 10% on certain aluminium products. Besides reciprocal removal of import duties, India and the US have also agreed to terminate six trade disputes at the World Trade Organisation (WTO).
How are the farmer associations responding to this development?
Apple grower associations in Himachal Pradesh and Kashmir have expressed strong disapproval of the India-US decision to cut import duty on Washington apples to India by 20%.
They say that the decision will have a devastating impact on the apple industry in the two states, which is already facing stiff competition from imported apples. The apple grower associations have called on the Indian government to immediately reverse the decision and to increase the import duty on Washington apples to 100%. They say that this is the only way to protect the interests of Indian apple farmers.
Kashmir Valley Fruit Growers Cum Dealers Union, which is an elected apex body of all fruit associations of Kashmir, has expressed its concern and displeasure over the decision to slash down import duty on Washington apples.
“Kashmir’s fruit growers and dealers fear that the 20% reduction in import duty will significantly increase the import of Washington apples in Indian markets, shrinking the space for domestic apples. In fact, 22 lakh metric tons of apples are produced in Kashmir, and about 70% of households in J&K are directly or indirectly dependent on this sector. It is the backbone of J&K’s economy”, Bashir Ahmad Basheer, Chairman of Kashmir Valley Fruit Growers Cum Dealers Union and President of the New Kashmir Fruit Association told Ziraat Times.
“Washington apples are a high-quality fruit. The 70% import duty pushed it into a different league where it did not compete with the premium Indian apples. However, with the reduction in import duty, it will cost roughly the same and will, therefore, severely hit the domestic apples in Indian Markets”, said Harish Chauhan, convener of the Sanyukt Kisan Manch.
“Imported US apple will hit the market around September, when the locally produced apple is marketed. People will buy Washington apple if the price of our apple is high,” said Lokender Bisht, president of the Progressive Growers Association.
Mr Bisht added that the Central Government should review its decision and restore the import duty to 70%.
Commenting on the development, Progressive Growers Association, Himachal Pradesh said, “The decision to cut import duty on Washington apples is a betrayal of the apple growers of Himachal Pradesh. We have been demanding for years that the import duty on Washington apples be increased to 100%, but the government has refused to listen to us. This decision will destroy the apple industry in Himachal Pradesh.
The Kashmir Valley Fruit Growers-cum-Dealers Union has requested the Lt. Governor JK(UT), Additional Chief Secretary/ Financial Commissioner, Agriculture/ Horticulture production Department to take up the matter with the concerned quarters of Government of India for immediate rolling back the decision.
How could the import duty reduction impact Kashmir and Himachal apples?
The 20% cut in duty tax on Washington apple imports is likely to have a negative impact on India’s apple farmers in Kashmir and Himachal Pradesh. These farmers are already facing stiff competition from imported apples, and the reduction in duty will make it even harder for them to compete.
“Washington apples are known for their high quality and attractive appearance, and they are often sold at a lower price than Indian apples. This means that Indian apple farmers will have to find ways to reduce their costs in order to remain competitive. They may also need to focus on producing higher-quality apples that can command a premium price”, said Shahid Amin, an apple trader.
The reduction in duty is also likely to lead to an increase in the import of Washington apples. This could further squeeze the market for Indian apples, and it could force some farmers to leave the industry altogether, he added.
What is the current scale of apple imports to India?
According to EastFruit analysts, India imported 392,000 tons of apples worth $320 million in 2022. The top 5 suppliers of apples to India in 2022 were: Turkey (26%), Iran (23%), Chile (18%), Italy (14%), New Zealand (6%).
Other major suppliers of apples to India in 2022 included South Africa, Poland, UAE (re-exports), and Brazil.
The import of apples is likely to continue to increase in the coming years, as the demand for apples in India continues to grow, experts believe.
