Concerns Mount as India Eases Customs Duty on US Apples: Implications for Kashmiri Fruit Growers

Wed Sep 13 2023
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SRINAGAR: The recent decision by the Narendra Modi-led Indian government to reduce customs duty on apples and walnuts imported from the United States has sent shockwaves through the fruit trading community in Indian illegally occupied Jammu and Kashmir (IIOJK). This move, aimed at slashing an additional tariff duty of 20 percent on US apples and walnuts, has left Kashmir’s fruit growers deeply concerned about their future prospects in light of various challenges they already face, such as declining output, unfavourable pricing, and other pressing issues.

The Kashmir Media Service has reported that local growers fear the repercussions of the relaxed import duties, especially in terms of market share. They are apprehensive that the imported US fruit will flood Indian markets at lower prices, thereby adversely affecting the demand for locally grown produce.

Bashir Ahmad Bashir, the President of the Kashmir Valley Fruit Growers Dealers Union, voiced his concerns, emphasizing the negative impact this decision would have on Kashmiri apples. He urged the Indian government to reconsider its stance, taking into account the potential losses that farmers may incur as a result of these policy changes.

The apple growers in IIOJK have been grappling with various challenges in recent years, including the 2019 shutdown and the COVID-19 lockdown. The further reduction in import duties for US products exacerbates their concerns. Manzoor Ahmad Mir, an apple grower from North Kashmir’s Sopore, pointed out a glaring disparity: American apple growers receive substantial government subsidies, while their Kashmiri counterparts lack such support. Mir expressed his belief that the Indian government’s actions may be aimed at undermining the apple industry in Kashmir.

It’s important to note that the horticulture sector plays a pivotal role in IIOJK’s economy. In 2019, the region produced approximately 1.9 million metric tons of apples, making it a crucial source of livelihood for 33 lakh people. Nearly seven lakh families directly or indirectly depend on this sector for their economic well-being.

This development comes in the wake of a trade agreement between the United States and India in June of this year, where they decided to resolve six outstanding disputes at the World Trade Organization. As part of this agreement, the Modi government committed to reducing tariffs on certain US products, which included chickpeas, lentils, almonds, walnuts, apples, boric acid, and diagnostic reagents. Notably, this announcement followed the G-20 summit held in New Delhi.

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