The Kashmir Valley Fruit Growers Cum Dealers Union, representing the elected apex body of all fruit associations in the valley has expressed displeasureover the Government’s recent decision to reduce the import duty on Apples from other countries.
The Valley-based fruit growers and dealers fear that the reduction
in import duty will have significant repercussions, leading to a surge in
the import of Washington Apple into Indian markets. “Such a development would result in limited opportunities for the domestic production of apples. Currently, the Kashmir Valley produces an impressive 22 lakh metric tons of apples, with approximately 70% of households in the J&K being directly or indirectly dependent on this sector.”
The Union said that the Washington Apple is renowned for its high- quality standards, and the previous 70% import duty ensured that it
remained in a different league compared to premium Indian apples. However, with the reduction in import duty, the Union said, the cost of Washington Apple will decrease, posing a severe threat to the domestic
apple industry in Indian markets.
They said that they have already endured heavy losses in recent
years due to various factors and now, they fear that the Government’s
decision to slash the import duty would exacerbate their struggles, 4/8
potentially leading to financial hardships. In light of these concerns, the Kashmir Valley Fruit Growers Cum Dealers Union has appealed to the Lieutenant Governor, Manoj Sinha and other high-level officials in the administration to intervene, urging them to take up the matter with the concerned quarters of the Government of India, seeking an immediate reversal of the decision to reduce the
import duty on Washington Apple. A reduction in import duty on apples could have both positive and negative impacts on the apple industry in Kashmir.
Lower import duties on Washington apples may result in increased price competition for Kashmiri apples. If the imported apples are significantly cheaper, it could impact the profitability of Kashmiri apple growers who may struggle to compete on price alone.
A surge in imported apples could lead to a shift in market share, with consumers opting for the relatively cheaper imported options. This could potentially reduce the market share and demand for Kashmiri apples, impacting the incomes of local farmers and traders.
A significant reduction in import duties could make Washington apples more economically attractive for traders and retailers. Over time, this increased reliance on imported apples may erode the self- sufficiency and local identity of the Kashmiri apple industry.
It’s important to consider that the actual impact of reduced import duties on Washington apples would depend on the magnitude of the reduction, consumer preferences, marketing strategies, and the ability of the Kashmiri apple industry to adapt to changing market dynamics. Assessing the potential impact would require a comprehensive analysis of the market conditions, industry competitiveness, and consumer behavior.
