Tariff cut on US apples alarms Kashmiri growers

Indian govt reduces duty by 20%, puts growers’ livelihood at stake

ISLAMABAD:

The recent move by the Indian government, led by Narendra Modi, to relax customs duties on apples imported from the US has sparked concerns among fruit traders in the Indian illegally occupied Jammu and Kashmir (IIOJK).

The decision to reduce the additional tariff duty by 20% on US apples and walnuts has left Kashmir’s fruit growers worried about their future prospects. They fear that the import of US fruit at lower rates will erode the market share of locally produced apples.

President of the Kashmir Valley Fruit Growers Dealers Union, Bashir Ahmad Bashir, expressed his concern, saying that this move would have a detrimental impact on Kashmiri apples. He called on the Indian government to reconsider its decision, taking into account the potential losses that farmers might face.

Kashmiri apple growers have already faced significant challenges due to the 2019 shutdown and the COVID-19 lockdown. The further reduction of import duties on US products is expected to adversely affect their businesses. Manzoor Ahmad Mir, an apple grower from North Kashmir’s Sopore, pointed out that American apple growers receive substantial government subsidies, which their Kashmiri counterparts lack. He raised concerns that the Indian government’s decision might be an attempt to undermine the apple industry in Kashmir.

The horticulture sector plays a crucial role in IIOJK’s economy, contributing significantly to its overall economic activity. In 2019, the region produced approximately 1.9 million metric tonnes of apples, and horticulture serves as a livelihood source for around 3.3 million people. Nearly 700,000 families are directly or indirectly dependent on this sector.

This move comes following an agreement between the US and India in June of this year to resolve six outstanding disputes. As part of this agreement, the Modi government also committed to reducing tariffs on specific US products, including chickpeas, lentils, almonds, walnuts, apples, and others.

Published in The Express Tribune, September 14^th, 2023.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.