The apple industry of Kashmir, one of the largest contributors to the region’s economy, is likely to be hit by the Indian Government’s decision to remove additional duty from American products including walnuts, almonds, apples and chickpeas among others.
The Ministry of Finance ahead of the G20 event in New Delhi announced the elimination of tariffs on a number of American products, including chickpeas, lentils (masur), apples, walnuts in shells, fresh or dried almonds, as well as shelled almonds, in a notification dated September 5.
United State and India decided to resolve six WTO issues and remove retaliatory tariffs on particular US goods during Prime Minister Modi’s official visit to the US in June. The decision will result in cutting down of 10 percent taxes on chickpeas, lentils (20%), fresh or dry almonds (7/kg), shelled almonds (20/kg), walnuts (20%), and fresh apples (20%).
The decision has enraged the farmer bodies, traders and politicians in Jammu Kashmir. Growers of the region who have been facing losses for the last four years say that the removal of additional duty on American apples will be one of the worst hit Kashmiri agricultural sector has taken over the years.
As per Kashmir’s Horticulture Department, more than 7 lakh farming families (approx. 35 lakh souls) are dependent on Horticulture sector which contributes about 9 percent to the Jammu Kashmir’s Gross Domestic Product.
According to the official figures, the total cultivation of fruits in Jammu Kashmir was 2.21 lakh hectares in 2001 and in 2021, it has grown to 3.31 lakh hectares– which shows a phenomenal rise of 1.1 lakh hectares in two decades.
Local reactions
Bashir Ahmad, president of the Fruit Growers and traders Association of Kashmir, said that this year’s hailstorms and unforeseen meteorological circumstances, such as unseasonal rain, have had a negative impact on growers and traders.
According to him, lowering import tariffs on Washington Apple by 20% will make things more difficult on Kashmiri cart and have a negative effect on the horticultural sector. “It will be quite sad if we don’t get acceptable rates for our apples. Despite the fact that there is a lot of apple supply, a drop in prices will significantly worsen our problems. We appeal that the waiver be promptly revoked by the Indian government, ” Ahmad continued.
This latest move of removal of additional taxes is not only expected to impact Kashmiri apple cart, but the farmers from Himachal and Uttarakhand will take a hit too.
Ali Mohammed Mir, a fruit grower from Shopian expressing anguish over the decision said, “why does it seem every year that there is a new conspiracy against our economy?”. From worst pesticides, blocking of trucks, Iranian apple every year a new measure is adopted to destroy our fruit industry, Ali Mohammed said.
“For the past three decades, I have been growing apples and I must tell you that never in my life have I seen such issues before. Yes, highway always has been an issues, but never has our movement been halted for any reason other than that,” he added.
He thinks that Kashmiri apples are better than the American product, but the sort of liking we have for foreign products and an inferior thought about our local products will obviously play a major role in the buying perception of public at a large. “The farmers in America get subsidies, they have technologies and the schemes are just amazing out there. “It might be tough for the Kashmiri apples to compete with their marketing influence,” Bashir said.
Pertinently, in 2017, the government of India had raised the duty of the apple from the United States from 50 per cent to 70 per cent, the latest reduction of 20 per cent will adversely affect the local produce of Kashmir, said Bashir.
Ali Mohammed said that Kashmiri apples are famous all over India. “We don’t want our apple demand to be reduced. We want our apple industry to grow,” he said.
Several politicians including Mehbooba Mufti, the president of the People’s Democratic Party (PDP) and Mohammed Yusuf Tarigami responded to the removal of taxes and warned of its disastrous effects on the Kashmir’s apple growers.
Speaking to The Kashmiriyat, Mohammed Yousuf Tarigami said that it was unfortunate that the central Government had issued such an order. “Rather than taking steps for the promotion of the local produce, the Government is causing disaster to our fruit industry,” said Tarigami. The decision should be rolled back forthwith, he demanded.
“GOI’s decision to remove additional duties on apples, walnuts and almonds will have a devastating effect on local growers in J&K already grappling with huge losses post-2019. Hope PMO India reconsiders,” Mufti wrote on X, formerly known as Twitter.