The Kashmir Valley Fruit Growers Cum Dealers Union, representing the elected apex body of all fruit associations in the valley has expressed displeasure over the Government’s recent decision to reduce the import duty on Washington Apple from 70% to 50%.
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, 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 Washington apples could have both positive and negative impacts on the apple industry in Kashmir.
NEGATIVE EFFECTS
Price Competition: 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.
Market Share: 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.
Dependency on Imports: 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 behaviour.
POSITIVE EFFECTS
Lower import duties on Washington apples may lead to increased availability of imported apples in the Indian market, including Kashmir. This could offer consumers more options and choices when it comes to apple varieties, flavours, and prices.
The import of Washington apples can potentially bring exposure to advanced cultivation techniques, post-harvest handling practices, and technological innovations used in the Washington apple industry. This knowledge transfer could benefit Kashmiri apple growers by improving their farming practices, productivity, and quality standards.
If lower import duties make Washington apples more affordable, it could potentially expand the overall market for apples in India. This increased demand may trickle down to benefit Kashmiri apple growers and exporters, as long as they can maintain their competitive edge in terms of quality, flavour, and regional branding.
Government Support and Infrastructure Development:
To support the Kashmiri apple industry in the face of increased competition, the government may consider providing assistance and incentives to enhance infrastructure, improve post-harvest handling facilities, and promote marketing and branding initiatives.
This can help strengthen the industry’s competitiveness and enable it to capture a larger market share. It’s important to note that the actual impact of reduced import duty on Washington apples on the Kashmiri apple industry would depend on various factors, including the magnitude of the reduction, consumer preferences, marketing strategies, and the industry’s ability to adapt to changing market dynamics.
CHALLEGNES
The apple industry plays a vital role in the economy of Kashmir. It is one of the region’s main sources of income and provides employment opportunities for thousands of people, including farmers, laborers, and traders.
Kashmir is renowned for its high-quality apple varieties. The most popular apple varieties grown in the region include Red Delicious, Golden Delicious, Ambri, McIntosh, and Granny Smith.
The Kashmir apple industry has faced various challenges and incurred losses in recent years.
Kashmir being prone to natural disasters such as floods, landslides, hailstorms, and earthquakes. These events have caused extensive damage to apple orchards, infrastructure, and storage facilities, resulting in significant financial losses for farmers and the industry as a whole.
The Apple orchards in Kashmir are susceptible to various pests and diseases, such as apple scab, powdery mildew, and codling moth. If not adequately managed, these pests and diseases can cause damage to apple trees, reduce crop yield and quality, and increase production costs, resulting in financial losses.
The industry has mostly influenced by market fluctuations, both in terms of demand and prices. Changes in consumer preferences, market competition, and global economic conditions can affect the profitability of Kashmiri apples. Fluctuating prices can impact the income of apple growers and traders, leading to financial losses.
Limited access to modern infrastructure, including cold storage facilities, transportation networks, and processing units, can result in post-harvest losses and reduced profitability. Inadequate infrastructure can hamper efficient handling, storage, and marketing of apples, contributing to financial losses.
The Kashmir valley has favorable climatic conditions for apple cultivation, characterized by cold winters and moderate summers. The orchards are spread across the region, with apple trees covering vast tracts of land. Apple production in Kashmir usually starts in July and continues until November.
Many apple orchards in Kashmir follow organic farming practices, which involve minimal or no use of synthetic fertilizers and pesticides. This focus on organic cultivation has contributed to the reputation of Kashmiri apples as being of high quality and free from harmful chemicals.
Kashmir apple export plays a significant role in the economy of the region. Kashmiri apples are known for their high quality, flavor, and unique characteristics, which contribute to their demand in both domestic and international markets. Here is some information about Kashmir apple exports
Kashmiri apples are primarily exported to neighbouring countries such as Bangladesh, Nepal, and the United Arab Emirates (UAE). These countries have a strong demand for Kashmiri apples due to their taste and quality. Efforts have also been made to expand exports to countries in Europe, Southeast Asia, and the Middle East.
The major trade routes for Kashmir apple exports are through road transport. Apples are transported from Kashmir to various distribution canters and ports for further shipment. The trade routes and logistics infrastructure play a crucial role in ensuring smooth and efficient export operations.
The government of Jammu and Kashmir, in collaboration with various agricultural agencies, provides support and incentives to promote apple exports. This support includes financial assistance, export subsidies, training programs, and the establishment of fruit mandis (wholesale markets) for efficient marketing and trading.
Proper packaging and grading of apples are essential for export. Kashmiri apples are typically sorted, graded, and packed in modern packing houses to meet the quality standards required for export. This ensures that the apples reach international markets in optimal condition.
Kashmir apple exports face various challenges that can impact the volume and profitability of exports. These challenges include market competition, fluctuations in global apple prices, trade barriers, and restrictions imposed by importing countries.
Efforts have been made to promote Kashmiri apples in international markets through branding and marketing initiatives. Branding campaigns and participation in international trade fairs and exhibitions help create awareness about Kashmiri apples and showcase their unique qualities to potential buyers.
(The author is a senior staffer at Greater Kashmir)
Disclaimer: The views and opinions expressed in this article are the personal opinions of the author.
The facts, analysis, assumptions and perspective appearing in the article do not reflect the views of GK.