Himachal’s Call for Higher Apple Import Duties: Protecting Domestic Orchardists

Why in News?

The Chief Minister of Himachal Pradesh has urged the Centre to raise import duty on foreign apples from 50% to 100% and impose a seasonal ban on imports from July to November to protect nearly 2.5 lakh apple farmers. Apples account for about 80% of the state’s fruit output.

• The demand follows the Centre’s decision to reduce import duty on New Zealand apples to 25% for April–August under the India–New Zealand Free Trade Agreement (FTA).
• Jammu and Kashmir has raised similar concerns, warning that rising imports are compounding the structural challenges faced by domestic apple growers.

Background: India Cuts Import Duty on New Zealand Apples Under FTA

Under the India–New Zealand Free Trade Agreement:

• Import duty on New Zealand apples has been reduced from 50% to 25% under a quota system.
• The quota begins at 32,500 tonnes in the first year and rises to 45,000 metric tonnes (MT) by the sixth year.
• Imports must meet a minimum import price of $1.25 (₹113.6) per kg.
• Shipments beyond the quota will continue to attract the higher 50% duty.

The move is part of India’s broader strategy to expand trade partnerships but has triggered concerns in domestic horticulture belts.

Apple Production in India: J&K and Himachal at the Core

India produces approximately 28 lakh metric tonnes (LMT) of apples annually.

• Jammu & Kashmir: Around 20 LMT, the largest producer.
• Himachal Pradesh: About 5–6 LMT, the second-largest producer.
• Remaining output comes from Uttarakhand and a few north-eastern states, where apple cultivation is still emerging.

The apple economy is valued at:

• Roughly ₹12,000 crore in J&K, and
• About ₹4,500 crore in Himachal Pradesh,

making farmers in these two states particularly vulnerable to tariff concessions and rising imports.

Farmers’ Concerns Over Cheaper Imports

Seasonal Overlap and Market Timing

• In India, apples are harvested between July and November.
• Off-season sales depend heavily on cold storage and Controlled Atmosphere (CA) facilities.
• New Zealand harvests apples between January/February and May, allowing it to supply fresh produce when Indian farmers rely on stored apples.

This timing overlap directly affects domestic competitiveness.

Impact on Domestic Prices and Sales

• Farmers fear that lower import duties will make foreign apples cheaper than domestic produce, affecting market realisations.
• In Jammu & Kashmir, high-density varieties like Gala reach markets by June, while Royal Delicious peaks by September.
• Since the duty cut applies from April to August, growers anticipate losses during crucial marketing windows.

Threat to Market Share

Orchardists from Himachal Pradesh and Jammu & Kashmir argue that cheaper imports will:

• Depress domestic prices,
• Reduce market share of Indian apples,
• Hit farmers hardest during the off-season, and
• Undermine incomes in India’s principal apple-growing regions.

Challenges Beyond Import Competition

1. Climate Stress and Falling Yields

Apple production has been adversely affected by:

• Erratic weather,
• Reduced snowfall,
• Prolonged dry spells,
• Floods, cloudbursts, and landslides.

These factors have weakened orchards and lowered productivity.

2. Rising Disease Burden

Changing climatic conditions have led to a rise in:

• Fire blight,
• Apple scab,
• Powdery mildew,
• Sooty blotch, and
• Bitter rot.

Reduced snowfall and higher temperatures have also intensified water scarcity, increasing disease vulnerability.

3. Production Losses and Quality Decline

• In 2023, Himachal’s apple output fell to 4.84 LMT, nearly 28% lower than 2022, following devastating floods.
• Although production recovered to 6.87 LMT in 2025, excessive rainfall and natural disasters caused quality deterioration, with nearly 1 LMT rejected for poor size and quality.

4. Infrastructure and Transport Bottlenecks

Logistical disruptions have compounded farmers’ problems:

• The prolonged closure of the Jammu–Srinagar National Highway (NH-44) due to landslides stranded hundreds of trucks during peak harvest.
• Delayed market access led to spoilage and financial losses.

Farmers’ Demands for Protection

In light of cumulative pressures, farmers’ groups have demanded:

• 100% import duty on foreign apples,
• A July–November import ban,
• Special category protection for domestic apple growers, and
• Higher subsidies and support mechanisms.

Farmer leaders argue that, unlike countries such as New Zealand—where apple farming is heavily subsidised and insured—Indian growers receive limited direct support.

They stress that instead of increasing exposure to foreign competition, policy should prioritise:

• Targeted support,
• Productivity enhancement,
• Climate resilience, and
• Infrastructure development for domestic horticulture.

Strategic Implications and Way Forward

The debate highlights a broader policy tension between:

• Trade liberalisation under FTAs, and
• Protection of vulnerable agricultural sectors.

A balanced approach could include:

• Calibrated tariff structures,
• Seasonal safeguards,
• Enhanced crop insurance and climate adaptation support,
• Investment in cold-chain infrastructure, and
• Market diversification for Indian apples.

Such measures can align India’s trade commitments with farmer welfare and food security objectives.