Kashmir Fruit Growers Union writes to Finance Minister, urges to prioritize horticulture in 2025-26 Budget

Srinagar: The Kashmir Valley Fruit Growers Cum Dealers Union (KVFG Union), the apex body representing fruit growers across Jammu &  Kashmir, has appealed to Union Finance Minister Nirmala Sitharaman to include key provisions in the 2025-26 Union Budget to bolster the region’s horticulture industry. In an open letter, the union highlighted the sector’s critical role in the Union Territory’s economy, with over 7 lakh families directly or indirectly dependent on it.

The union has submitted a 10-point demand, urging the government to implement a crop insurance scheme for horticulture, reintroduce the Market Intervention Scheme (MIS), and establish dedicated horticulture estates. Other demands include GST exemptions on cardboard boxes, insecticides, and fertilizers, as well as funding for testing laboratories, orchard rejuvenation, and the development of kiwi, grape, and pomegranate orchards.

The letter emphasized the need for immediate budgetary allocations to address challenges such as natural disasters, rising production costs, and the lack of infrastructure. The union also called for the waiver of Kisan Credit Card (KCC) loans for small growers affected by years of turmoil, floods, and the COVID-19 pandemic.

The KVFG Union, representing growers from Srinagar, Sopore, Baramulla, Shopian, and other regions, stressed that these measures are essential to safeguard the livelihoods of farmers and ensure the sustainability of J&K’s horticulture sector.

Ziraat Times here reproduces the 10 points raised by the union in their letter:

1. Implementation of Crop Insurance Scheme for the Horticulture Sector

Despite the government’s previous announcement of a Crop Insurance Scheme for horticulture on the analogy of the agriculture sector, it has not yet been implemented. Given the increasing risks from natural calamities, it is imperative to include budgetary provisions in the 2025-26 estimates to roll out the scheme, providing much-needed financial security to fruit growers.

2. Revival of the Market Intervention Scheme (MIS)

Nearly 40% of the annual apple crop consists of Grade C and fallen apples (Ghiran), which push fruit growers into financial distress. The Market Intervention Scheme (MIS), previously introduced by the government and managed by the Horticulture Planning and Marketing Department, had helped mitigate losses by ensuring the procurement of lower-grade apples at fixed rates. However, the scheme has been discontinued for several years. To protect fruit growers from losses, it is essential to reinstate the MIS in the 2025-26 budget.

3. Establishment of a Dedicated Horticulture Estate

To facilitate the establishment of Controlled Atmosphere (CA) storage units, canning factories, juice plants, and allied processing industries, a dedicated Horticulture Estate should be developed, modeled after Industrial Estates in J&K. A single-window clearance system should be introduced within the estate to streamline approvals and ease business operations for horticulture stakeholders.

4. Exemption of GST on Essential Horticulture Supplies

The rising cost of cardboard cartons, plastic trays, baskets, waste paper, insecticides, pesticides, and fertilizers is a major concern for fruit growers. The shift from wooden crates to cardboard boxes—due to the scarcity of Poplar (Safaida) trees—has significantly increased transportation costs. With a 12% GST levied on these essential materials, small-scale farmers struggle to bear the financial burden. The KVFG Union urges the government to either exempt these items from GST or reduce the tax rate to the minimum possible level to support the horticulture sector.

5. Recognition of Tree Spray Oil as an Agricultural Product

To make Tree Spray Oil more affordable for farmers, it should be officially categorized as an agriculture product, allowing for appropriate budget allocations in the 2025-26 financial estimates.

6. Establishment of Pesticide Testing Laboratories

With the introduction of new agricultural technologies, pesticides, and insecticides, there is a need for modernized testing laboratories across all districts in Jammu and Kashmir. Budgetary provisions should be allocated to establish and equip these testing labs with advanced machinery and trained personnel, enabling fruit growers to ensure the safety and efficacy of their produce.

7. Rejuvenation of Fruit Orchards

Given the damage sustained by fruit orchards due to climatic adversities, provisions should be made to ensure the availability of high-density planting material to farmers in the upcoming financial year, facilitating orchard rejuvenation.

8. Disaster Relief Fund for Horticulture

Natural calamities such as untimely snow, heavy rainfall, droughts, and strong winds frequently damage fruit crops. To mitigate these losses, a dedicated Horticulture Sector Disaster Relief Fund should be established within the 2025-26 budget to provide emergency assistance to affected farmers.

9. Waiver of Kisan Credit Card (KCC) Loans

Many small and marginal fruit growers have taken loans under the Kisan Credit Card (KCC) scheme. However, due to economic disruptions caused by past turmoil, the 2014 floods, the COVID-19 pandemic, and subsequent extreme weather conditions, many growers are unable to repay their loans. Given their financial hardship, it is strongly recommended that KCC loans for the poorest fruit growers be waived.

10. Promotion of Kiwi, Grape, and Pomegranate Cultivation

There is an acute shortage of Kiwi, Grapes, and Pomegranates in J&K. To diversify horticulture production and reduce dependence on traditional crops, financial provisions should be allocated in the 2025-26 budget to encourage the cultivation of these high-value fruits through incentives, research, and farmer support programs.