Kashmir Apple: Government Admits It Reduced Duty On American Apple Imports

SRINAGAR: The Government of India has revealed details regarding the impact of reduced import duties on apples, an issue that has raised concerns among apple growers, particularly in Kashmir. Responding to an unstarred question posed by Member of Parliament Agha Syed Ruhullah Mehdi in the Lok Sabha on December 9, the Ministry of Finance provided a detailed account of the situation.

The import duty on apples from the United States was reduced from 70 per cent to 50 per cent in September 2023. This reduction came as part of the resolution of certain World Trade Organisation (WTO) disputes, which had earlier justified the imposition of a retaliatory 20 per cent additional duty on US apples. This retaliatory duty was lifted, aligning the tariff with the WTO-bound rate of 50 per cent, the government said.

The data shared by the government highlights a significant increase in apple imports in the April-September period of 2024, which reached Rs 17,902 lakhs, surpassing the annual figure of Rs 17,716 lakhs in 2023-24. This marked contrast underscores the surge in imports following the duty adjustment.

Despite the substantial increase in apple imports, the government admitted that it has not conducted any formal assessment of the impact on domestic apple growers, particularly those in the Kashmir Valley, India’s leading apple-producing region. The valley’s farmers have long relied on favourable market conditions to sustain their livelihoods, and the rising competition from imported apples has amplified their concerns.

The Ministry also stated that it has not received any recent representations from apple farmers’ associations regarding the duty reduction or requests for further protective measures. This assertion might indicate either a communication gap or limited advocacy efforts in the face of mounting challenges.

When questioned about the possibility of increasing the import duty to support domestic apple farmers, the government clarified that it could not impose tariffs exceeding the WTO-bound rate of 50 per cent. This limitation, tied to India’s international trade obligations, restricts the government’s ability to provide additional tariff protection to the domestic apple industry.

Kashmir’s apple growers have been vocal about their struggles amidst fluctuating market dynamics. The region accounts for over 70 per cent of India’s apple production, making it a crucial sector for the local economy and employment. The surge in imports, particularly from the US, poses a direct challenge to these growers, who already contend with high production costs and unstable prices.

The government’s response suggests a lack of immediate plans to address these concerns, further fuelling apprehensions among stakeholders. While adherence to WTO norms is essential, industry experts and farmers alike emphasise the need for innovative measures, such as subsidies or enhanced marketing support, to safeguard the domestic apple industry.

The question raised by Agha Syed Ruhullah Mehdi has brought the spotlight back on the challenges faced by India’s apple growers. While the government’s data paints a clear picture of increasing imports, the absence of impact assessments and recent representations highlights the need for proactive engagement with stakeholders. As the debate continues, the government faces mounting pressure to balance international trade commitments with the welfare of domestic producers, particularly in sensitive regions like Kashmir. (KL)