Apple Imports and Farmer Distress (Completely Explained)

Context

1. Himachal Pradesh and Jammu & Kashmir have raised concerns over India’s decision to cut import duty on New Zealand apples under a Free Trade Agreement.
2. Apple farming is the backbone of hill economies and supports lakhs of small and marginal farmers.
3. The issue highlights the tension between trade liberalisation and protection of vulnerable agricultural livelihoods.

Q1. Why has the issue of apple import duty resurfaced?

1. India reduced import duty on New Zealand apples from 50% to 25% for April–August under the India–New Zealand FTA.
2. Himachal Pradesh has demanded:
   1. Raising import duty to 100%.
   2. A seasonal import ban from July to November.
3. Apples account for nearly 80% of Himachal Pradesh’s fruit output.
4. About 2.5 lakh farmers in Himachal Pradesh depend directly on apple cultivation.
5. Jammu & Kashmir has echoed similar concerns, warning of severe income losses for growers.

Q2. What does the India–New Zealand FTA provide on apple imports?

1. Import duty was reduced to 25% under a quota system.
2. Quota details:
   1. 32,500 metric tonnes in the first year.
   2. Rising to 45,000 metric tonnes by the sixth year.
3. Minimum Import Price (MIP) fixed at $1.25 per kg.
4. Imports beyond the quota continue to attract 50% duty.
5. The provision is aimed at trade facilitation but raises concerns about uneven competition.

Q3. Why are Jammu & Kashmir and Himachal Pradesh most affected?

1. India’s annual apple production is around 28 lakh metric tonnes.
2. Regional contribution:
   1. Jammu & Kashmir: ~20 lakh metric tonnes.
   2. Himachal Pradesh: ~5–6 lakh metric tonnes.
3. Apple economy valuation:
   1. Jammu & Kashmir: ~₹12,000 crore.
   2. Himachal Pradesh: ~₹4,500 crore.
4. Apple farming in both States is dominated by:
   1. Small and marginal growers.
   2. High dependence on seasonal income.

Q4. How do apple imports affect domestic marketing and prices?

1. Indian apples are harvested between July and November.
2. Off-season sales rely on:
   1. Cold storage.
   2. Controlled Atmosphere (CA) facilities.
3. New Zealand apples:
   1. Harvested between January/February and May.
   2. Enter Indian markets when domestic farmers sell stored produce.
4. Reduced duty from April to August overlaps with:
   1. Arrival of Gala apples in June.
   2. Marketing of Royal Delicious by September.
5. Cheaper imports are expected to:
   1. Depress domestic prices.
   2. Reduce market share of Indian apples.
   3. Increase unsold stocks.

Q5. What challenges do domestic apple growers already face?

1. Climate-related stresses:
   1. Reduced snowfall.
   2. Erratic rainfall and prolonged dry spells.
   3. Floods, cloudbursts, and landslides.
2. Rising disease burden:
   1. Apple scab.
   2. Fire blight.
   3. Powdery mildew.
   4. Bitter rot and sooty blotch.
3. Production losses:
   1. Himachal output fell by nearly 28% in 2023 after floods.
   2. In 2025, nearly 1 lakh metric tonnes rejected due to poor quality.
4. Infrastructure bottlenecks:
   1. Frequent closure of Jammu–Srinagar National Highway.
   2. Delayed market access during peak harvest.
   3. Heavy post-harvest losses.

Q6. What are farmers demanding from the government?

1. Raising import duty on foreign apples to 100%.
2. Seasonal import ban during July–November.
3. Special category protection for hill apple farmers.
4. Higher subsidies and income support.
5. Expansion of crop insurance coverage.
6. Support for climate-resilient varieties and orchard rejuvenation.
7. Improved storage, grading, and transport infrastructure.

Q7. What is the broader policy dilemma involved?

1. Trade liberalisation under FTAs increases consumer choice but exposes farmers to import competition.
2. Apple cultivation is:
   1. Climate-sensitive.
   2. Capital-intensive.
   3. Dependent on timely market access.
3. Tariff reductions without domestic safeguards can aggravate rural distress.
4. Highlights need for balancing:
   1. International trade commitments.
   2. Livelihood security of farmers.

Q8. What is the Way Forward?

1. Use of WTO-compliant safeguard measures for sensitive crops.
2. Time-bound seasonal tariffs instead of blanket bans.
3. Investment in:
   1. Climate-resilient apple varieties.
   2. Cold chains and CA storage.
   3. Disease surveillance and extension services.
4. Strengthening crop insurance and disaster compensation.
5. Promoting value addition, processing, and exports to improve farmer incomes.

Conclusion

The apple import dispute reflects deeper vulnerabilities in India’s horticulture sector. A calibrated trade policy, combined with strong domestic support, is essential to protect farmers while honouring global trade commitments.