India-US trade deal ripples reach Kashmir as apple growers flag import threat

Recent tariff relaxations can undermine a sector that sustains millions of rural livelihoods in Jammu and Kashmir and other hill States

Srinagar: India’s push to recalibrate agricultural import policies amid global trade negotiations has sparked unrest in its own apple heartland, with growers in Kashmir and other hill States warning that recent tariff relaxations could undermine a sector that sustains millions of rural livelihoods.

The Centre has cut import duty on US apples from 50 per cent to 25 per cent, while simultaneously raising the Minimum Import Price (MIP) from Rs 50 to Rs 80 per kg. While the government argues the higher MIP protects domestic farmers, apple growers from Jammu and Kashmir, Himachal Pradesh and Uttarakhand say the reduced tariff gives imported apples an unfair edge in India’s vast consumer market.

In a letter to Prime Minister Narendra Modi, the Kashmir Valley Fruit Growers Cum Dealers Union, an umbrella organisation representing orchardists and traders across the Valley, demanded an import duty of more than 100 per cent on apples from the US and Europe. The group warned that continued liberal imports could push India’s horticulture sector towards becoming a “sick industry”.

Why Kashmir is alarmed

Apples are not just another crop in Kashmir — they are its economic lifeline. The Valley accounts for nearly 70 to 80 per cent of India’s total apple production, making the fruit central to both regional stability and rural employment. The apple economy in Jammu and Kashmir is estimated to be worth around Rs 12,000 crore annually, supporting over 3.5 million people directly and indirectly, from orchardists and transporters to traders and packaging workers.

In the 2024–25 season, Kashmir produced close to 21 lakh tonnes of apples, most of which were sold in mainland Indian markets such as Delhi, Mumbai, Kolkata, Ahmedabad, Bengaluru and Chennai. The fruit trade is a key contributor to the Union Territory’s GDP and one of the few large-scale private-sector employers in a region with limited industrial activity.

Growers argue that imported apples — often benefiting from advanced mechanisation, export subsidies and better storage infrastructure abroad — can undercut domestic produce even at higher MIP levels. “A lower import duty means foreign apples can still enter India at competitive prices, depressing rates for local farmers during peak season,” a fruit trader said.

The opposition is not limited to Kashmir alone. Apple growers in Himachal Pradesh and Uttarakhand — India’s other major apple-producing States — have also raised concerns that relaxed import norms could hit small and medium farmers who lack the scale and capital to absorb price shocks.

Stakeholders say the issue is not just about price, but about survival. Rising input costs, climate-related crop losses, transport disruptions and limited cold storage facilities have already squeezed margins for Indian growers. They fear that an influx of imported apples during the domestic marketing season could worsen distress in rural hill economies.

Trade-off between consumers and farmers

The Centre’s move comes amid broader trade negotiations and efforts to expand agricultural imports under global trade commitments. While cheaper imports can benefit urban consumers, growers argue that agriculture — especially in ecologically fragile regions like the Himalayas — needs calibrated protection.

In their letter, Kashmir’s fruit growers have warned that repeated imports from countries such as Iran, the US and European nations were cumulatively harming local producers, especially small and marginal farmers already struggling with rising input costs, erratic weather, pest attacks and transportation challenges.