Apple Economy at risk as FTAs open door to cheaper imports

Apple growers and political leaders across India’s hill states have raised serious concerns over the dilution of import duties on apples under existing and proposed Free Trade Agreements (FTAs), warning that cheaper imports could cripple domestic horticulture and sharply reduce revenue in Jammu and Kashmir.

Jammu and Kashmir People’s Democratic Party (PDP) leader Mehbooba Mufti on Saturday cautioned that further tariff concessions under proposed FTAs with Europe, the United States and Chile could inflict long-term damage on the Valley’s apple-based economy, which supports nearly 15 lakh families.

In a post on X, Mufti said that the 25 per cent reduction in import duty under the India-New Zealand Free Trade Agreement had already exposed local growers to what she termed “unfair imports”, resulting in depressed market prices and reduced incomes for orchardists.

She warned that a surge in imported apples not only weakens farmers’ earnings but also directly affects Jammu and Kashmir’s revenue growth, as apple cultivation and trade form the backbone of the Union Territory’s rural economy, employment generation and allied industries such as transport, packaging and cold storage.

“Flooding markets with imported apples risks destroying J&K’s horticulture backbone. This is not just about fruit, but livelihoods,” Mufti said, urging the Jammu and Kashmir Chief Minister to immediately take up the issue with the Centre to safeguard growers’ interests.

Concerns echoed strongly in Himachal Pradesh, where apple growers staged protests against the Indo-New Zealand trade pact. Farmer groups argue that the reduction of import duty from 50 per cent to 25 per cent has made Indian apples less competitive against cheaper foreign produce, particularly during peak marketing seasons.

A delegation of the Himachal Pradesh United Farmers’ Organisation met State Horticulture Minister Jagat Singh Negi, warning that further duty reductions under future FTAs could devastate apple growers across Himachal Pradesh, Uttarakhand and Jammu and Kashmir.

“The duty cut poses an existential threat to hill-state orchardists,” said Harish Chauhan, convener of the delegation. He warned that if import duties are reduced to zero under upcoming trade agreements with Europe or the US, it could trigger the collapse of an estimated ₹26,000-crore apple economy across the three states.

Chauhan said Himachal Pradesh alone has an apple-based economy valued at nearly ₹6,500 crore and stressed that farmers, who depend on a single annual crop, would be unable to survive sustained price crashes caused by imported apples.

The farmers have demanded that the import duty on apples be raised to 100 per cent and that a Minimum Import Price (MIP) of ₹100 per kg be enforced to prevent market dumping.

Responding to the concerns, Minister Jagat Singh Negi criticised the Centre for reducing import duties despite earlier assurances to protect domestic growers. He said the latest decision undermines farmers’ interests and vowed that the state government would take the matter to the Centre.

Negi also warned that concessions granted under the New Zealand pact could set a precedent, inviting similar demands from the United States, Europe and other countries, further squeezing India’s apple growers.

“If import duties continue to be diluted under trade agreements, orchardists in hill states will be left with nothing,” he said, calling for urgent consultations involving farmers, stakeholders, MPs from apple-growing regions and the Prime Minister to find a sustainable solution.