Central govt’s 20% cut in import duty on US apples leaves bitter taste for Himachal orchardists, arrivals jump from 10,000 to 4.4 lakh boxes

The Newz Radar

SHIMLA: The reduction in import duty on US apples has led to a nearly 40-fold increase in imports into India, creating challenges for Himachal Pradesh orchardists. American apples are flooding all markets, affecting local demand, prompting orchardists to urge the Central Government to raise import duties to 100 per cent.

Himachal’s apples now face intensified competition from Washington apples as the Central Government had decreased the import duty from 70 to 50 per cent. Between September and November 2023, 4.40 lakh boxes of American apples were imported, nearly 40 times more than the 10,000 boxes imported during the same period in 2022. The Central Government’s reduction of import duty in June 2022 led to this surge, which surpassed the entire 2022 annual total of 2.24 lakh boxes. The imports will continue till March 2024.

A drastic import decline had followed a 2019 additional 20 per cent duty on American apples when it was increased from 50 to 70 per cent. Before 2019, 50 lakh boxes were imported annually, but by 2022, only 2.25 lakh boxes were imported. Now, cheaper American imports are affecting apple growers in Jammu and Kashmir, Uttarakhand and Himachal Pradesh.

20% duty hike led to decline in imports
In 2019, India imposed an additional 20 per cent duty on American apples, raising it from 50 per cent to 70 per cent. Consequently, American apple imports sharply declined. Prior to 2019, average 50 lakh boxes were imported from the US in a year. But the import duty hike drastically reduced this volume. In 2022, a mere 2.25 lakh boxes could be imported, rendering America non-competitive in the apple export market.

Apple imports from 32 countries
India imports apples from 32 countries, with Turkey, Iran, Chile and Italy dominating the market. While 26 per cent of apples come from Turkey, 23 per cent from Iran, 18 per cent from Chile and 14 per cent from Italy, the recent influx of cheap American apples has significantly increased the quantity arriving in India. Import duty on apples from non-SAARC countries, including America, is 50 per cent, causing losses for local growers. The demand for Himachali apples is decreasing due to foreign competition, leading to declining rates. The orchardists have long been demanding the raise in import duty to 100 per cent.

Orchardists want duty raised to 100%
Orchardists of Himachal Pradesh have been demanding a twofold increase in the import duty on apples from the current 50 per cent to 100 per cent. Harish Chauhan, convener of the Sanyukt Kisan Manch (SKM), an umbrella body of apple growers’ unions, emphasised the direct impact of reduced import duty on American apples that was visible in the quality of apples reaching India.

According to Chauhan, Washington apples from the US are prepared by locals who do not favour this variety, leading to its export to India. He insisted that the Central Government should raise the import duty to 100 per cent, safeguarding the interests of apple growers across the country.

Sanjay Chauhan, co-convener of the SKM, too highlighted the repercussions of the Central Government’s reduction in import duty on US apples, resulting in the influx of this more affordable variety not only across the country but also in Himachal’s markets. He asserts that during his visit to Himachal, PM Narendra Modi had pledged to raise the import duty on apples to 100 per cent, and in light of the current circumstances, he urged the Prime Minister to honour his commitment. Doing so, Chauhan emphasised, would play a pivotal role in preserving the economy of apple cultivation in Himachal.

Concern over illegal imports via Afghanistan
Satish Bhalaik, an orchardist from Kotgarh in Shimla, pointed out that the introduction of Washington apples had led to reduced demand for apples stored in controlled atmosphere (CA) stores in Himachal. This downturn was causing losses for CA store companies, ultimately impacting the growers, said Bhalaik, urging the Centre to raise the import duty on foreign apples. Additionally, he recommended providing subsidies to growers for reducing the production costs associated with fertilisers and farming equipment.

Another orchardist, Pradeep Singha, concurred with Bhalaik, advocating for a 100 per cent increase in import duty on foreign apples. He further raised concerns about apples entering the country illegally through the free trade agreement with Afghanistan. He called for stringent measures by the government to curb such unlawful practices.