Amid concerns about the potential impact of cheaper imports on the domestic market, the government is set to review the existing protective measures for homegrown apples. This move comes in response to worries raised by apple growers, who fear that a reduction in import duties could flood the Indian market with imported apples, threatening their livelihoods.
The apprehension among domestic apple producers stems from several factors. The import duty on Washington apples was reduced from 70% to 50% in 2023, leading to a reported surge in imports. Growers are concerned that any further reduction in import duties will shrink the market for domestically grown apples. They also face challenges such as erratic weather, rising input costs, and competition from cheaper imports from countries like Iran and Turkey. The high cost of production in hilly regions, where mechanization is difficult, adds to the burden on local growers.
The data on apple imports before and after the 2023 duty change illustrates the concerns of domestic growers. In 2018-19, when the import duty was 50%, apple imports from the US were approximately 1.28 lakh metric tonnes. After the government raised the import duty to 70%, imports fell to around 4,486 metric tonnes by 2022-23. However, following the reduction of the duty back to 50% in 2023, imports reportedly increased 20-fold in a short period.
The potential reduction in import duties is being sought as part of negotiations with the US on various trade issues. However, apple growers are advocating for an increase in import duties from 50% to 100% to safeguard their interests. They argue that reducing import duties would negatively affect the families who depend on apple cultivation. Some have warned that slogans like "vocal for local" would become meaningless if the government fails to protect the livelihoods of its own people.
In addition to the concerns about import duties, the apple industry in Jammu and Kashmir, which accounts for a significant portion of India's apple production, has been facing other challenges. These include political turmoil, the COVID-19 pandemic and competition from illegally imported Iranian apples.
The government's review of protective measures for homegrown apples will likely involve consultations with various stakeholders, including apple growers, importers, and consumer representatives. It will also likely take into account the interests of domestic producers while balancing them against the need to maintain fair trade practices and fulfill international obligations. The outcome of this review will be crucial for the future of the apple industry in India and the livelihoods of those who depend on it.