APPLE TRADERS IN J&K

NEWS: India is reducing import duties on apples from the U.S. and EU under trade agreements.

ABOUT

• Lower tariffs = Cheaper foreign apples = More competition.
• Import duty on apples: 50%
• Now–>Reduced to 25% (U.S.), reduced to 20% under TRQ (EU)

TRQ System (Tariff Rate Quota)

• A fixed quantity of imports allowed at lower tariff
• Beyond that quota → higher tariff applies
• Example: 50,000 tonnes apples allowed from EU at reduced duty

Importance of Apple Economy in J&K

• Apple = 50% of J&K horticulture production
• Produces ₹10,000 crore revenue approx.
• Employs ~35 lakh people (direct + indirect)
• Supports ~7 lakh families
• J&K contributes over 70% of India’s apple production

Kashmir: DIFFICULT TO Compete with Western Apples

• Low Productivity Problemà J&K: 7–8 tonnes/hectare, Western countries: 40–70 tonnes/hectare
• Western countries use: AI-based farming, high-density plantations
  • India: Recently introduced Gala apple variety
• Cold Storage Issue–> Kashmiri farmers invested heavily in CA storage
• Cheap imports may make these investments unviable

Off-Season Price Crash

Cheap imports (like New Zealand apples) may:

• Enter Indian market at lower prices
• Undercut domestic apples
• Reduce storage profitability
• Force distress sales by farmers