The issue of the looming crisis posed by the reduction in import duty on the apple industry, considered the backbone of Himachal Pradesh’s economy, will be raised in the Assembly today. Theog MLA Kuldeep Singh Rathore is set to raise the issue of the reduction in import duty on apples in the House. This issue is directly linked to the state’s ₹5,500 crore apple economy and the livelihoods of approximately 300,000 orchardist families.
Import Duty Reduction Raises Alarm
In fact, the central government has reduced the import duty on apples from the United States and New Zealand from 50 percent to 25 percent, and on apples from the European Union (EU) to 20 percent. The reduced import duty will now make foreign apples available in the Indian market at cheaper prices. This has created a crisis for the apple industry in Himachal Pradesh, as well as Jammu and Kashmir and Uttarakhand.
Impact on Himachal’s Premium Apples
Himachal’s premium apple will be badly affected
Kuldeep Rathore explained that the arrival of Washington apples in the Indian market will severely impact Himachal’s premium apples. This will not only reduce the price of premium apples, but will also directly impact apples stored in cold storage. Currently, import duties have been reduced for the US, New Zealand, and the EU. Now, under their influence, other countries will also exert pressure to reduce import duties.
The Centre reduced the import duty on US apples from 50% to 25%.
Political Reactions and Promises
Modi had promised 100% import duty
Rathore stated that before becoming Prime Minister, Narendra Modi had promised to reduce the import duty on apples to 100%. In reality, instead of increasing the import duty, it is being reduced. This is increasing the concerns of apple growers. He stated that he will raise this issue in the House of Representatives to protest the central government’s decision to reduce the import duty and demand its reversal.
Protests by Orchardists
Himachal’s gardeners have surrounded the secretariat.
It’s worth noting that Himachal’s orchardists protested outside the Secretariat two months ago against this decision. Orchardists allege that instead of increasing import duties, the central government is gradually reducing them for different countries, exacerbating the crisis affecting their livelihoods.
Himachali apple industry in crisis due to reduction in import duty.
Rising Concerns Over Cost and Productivity
Because of this, gardeners are more worried
A major cause of concern for orchardists is the difference in production costs and productivity. In Himachal, apple production is 7 to 8 metric tons per hectare, while in countries like the US, New Zealand, and China, it reaches 60 to 70 metric tons. Meanwhile, due to the geographical conditions in Himachal, the cost of producing apples per kilogram is approximately 27 rupees. Therefore, orchardists can only profit if their apples sell for at least 50 to 100 rupees per kilogram.
Global Pressure on Import Duties
Other countries will also put pressure on India to reduce import duties
Experts believe that, following the concessions granted to the US, New Zealand, and the EU, other countries may also pressure India to reduce import duties. This will increase the share of foreign apples in the Indian market and make competition more difficult for local producers.
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