Kashmir Fruit Growers Union welcomes crop insurance, flags ₹2000 cr farmers’ loss in Budget reaction

Ziraat Times News Desk

SRINAGAR, FEB 7 – The Kashmir Valley Fruit Growers Cum Dealers Union (KVFG), the apex body representing orchardists across the region, has issued a mixed response to the Jammu & Kashmir Budget 2026-27. While hailing the introduction of a dedicated Apple Crop Insurance Scheme, the Union warned that the “backbone of the economy” remains at risk due to unaddressed debts and high import competition.

In a statement issued today to Ziraat Times, the Union expressed appreciation for Chief Minister and Finance Minister Omar Abdullah’s decision to strengthen the Crop Insurance Scheme specifically for apples and to expand Controlled Atmosphere (CA) storage facilities.
“The introduction of insurance is a positive, much-needed step to protect growers against unforeseen risks,” the Union stated. However, they urged the government to extend this safety net to other vital fruits, including Cherry, Plum, Peach, Pear, and Babagosha, which currently remain uncovered.

Unaddressed demands: A ₹2000 crore void
Despite the positive steps, the KVFG highlighted a series of “critical and long-pending demands” that were missing from the fiscal estimates. The Union underscored that the horticulture sector suffered a staggering ₹2,000 crore loss due to the devastating deluge of 2025 and subsequent weather anomalies.

The Union has higlighted its top 5 missing demands in the budget, viz:

Compensation Package: A formal ₹2,000 crore relief fund for 2025 flood victims.

KCC Loan Relief: Waiver or restructuring of Kissan Credit Card (KCC) loans for the poorest growers.

Market Intervention: Reintroduction of the Market Intervention Scheme (MIS) to prevent distress sales.

Horticulture Estates: Establishment of dedicated estates modeled after Industrial Estates.

Subsidies: Direct financial support for fertilizers, pesticides, and packing materials like trays.

  1. A major point of contention remains the international trade landscape. The Union expressed grave concern over the reduction of import duties on New Zealand apples from 50% to 25% under the Free Trade Agreement (FTA).

    “There is a necessity for the imposition of 100% import duty on American and European apples,” the Union Chairman noted. “Without this protection, the local produce cannot compete, and the horticulture industry of J&K, Himachal, and Uttarakhand risks becoming a ‘Sick Industry’.”

    Beyond relief, the KVFG called for structural upgrades to the region’s trade hubs. They urged the government to allot specific funds for the development of major Fruit Mandis in Parimpora, Sopore, Shopian, Pulwama, and Anantnag, alongside the establishment of advanced testing laboratories within the UT.

    While reiterating their confidence in the present leadership, the Union urged the Government to hold immediate consultations with grower representatives. They emphasized that a comprehensive support package, including pesticide subsidies and interest exemptions on Cash Credit Limits, is essential to safeguard the livelihoods of thousands of families tied to the valley’s fruit industry.