Proposed India-EU trade pact sparks anxiety among Kashmir’s apple farmers
Growers fear cheaper European apple imports and reduced duties could undercut local prices and threaten livelihoods across J&K’s apple belt.
Srinagar: The proposed Free Trade Agreement (FTA) between India and the European Union has triggered unease among the Kashmir’s apple farmers as they fear a surge of cheaper European apples could severely disrupt local markets and threaten livelihoods of people dependent on it .
As per the draft framework of the agreement, India is expected to permit the import of apples from EU nations at a minimum import price Rs 80 per Kg coupled with a reduced import duty of 20 percent.
Initially imports would be restricted to 50,000 metric tonnes, but the volume is slated to rise gradually to 100,000 tonnes over the next ten years.
At present, apples imported from the European union attract a much higher duty of 50 percent.
Fruit growers in Kashmir argue that the proposed reduction in duty, along with lower landing prices of imported fruit will make it increasingly difficult for domestically produced apples to compete in wholesale as well as retail markets across India.
The popular varieties of Kashmiri apples are sold in range Rs 120-140 per kg and prices can go even higher rates when demand is good, said Mohammad Yousuf Bhat a well known fruit expert from Shopian .
He, however, said that if EU apples enter the Indian market at an estimated landing cost of around Rs 96 kg per kilogram, it will inevitably pull down the prices of local produce and this will directly hurt growers who are already struggling with rising input costs.
Growers said that the concern is compounded by the steady rise in apple imports from other countries.
In 2014, India imported around five lakh metric tonnes of apples from Iran, Turkey and Afghanistan.
Growers said that imports have already reduced the market share of domestic apples in major mandis.
Growers have already expressed deep concern over the recent reduction of import duty on apples from New Zealand under the India–New Zealand Free Trade Agreement (FTA), as according fi them it could severely undermine the livelihoods of domestic apple growers in Jammu and Kashmir.
The slashing of import duty from 50 per cent to 25 per cent has sent shockwaves through apple-growing regions, particularly Kashmir, where horticulture forms the backbone of the economy.
Experts said that apple cultivation in Europe is highly mechanised, capital intensive and geared purely towards commercial profit while in J&K apple farming is livelihood driven and many farmers hardly manage to recover production costs due to several reasons.
Growers have sought immediate intervention of higher ups in this regard to save this sector as this sector has suffered heavy damage last season already.
