Farmers in Kashmir say India-New Zealand FTA on apple violation of promises made by central government

Srinagar: Apple farmers in Kashmir expressed concerns over India’s decision to grant preferential market access with a reduced import duty of 25% to New Zealand apples under the free trade agreement.

They termed this a "violation of promises" made by union minister of agriculture and farmers’ welfare Shivraj Singh Chouhan to the farmers of Kashmir.

Even though the central government clarified that India has given a balanced and calibrated market access to New Zealand on apples and has put in place adequate safeguards to protect the interest of domestic farmers, the farmers say the FTA terms will directly impact sales of apples currently stored in controlled atmosphere (CA).


"This decision is concerning, and it will impact the sales of our fruit which is currently in CA stores. This decision is not in favour of apple farmers," said Bashir Ahmad Bashir, president of the New Kashmir Fruit Association, Fruit Mandi, at Parimpora in Srinagar.

Bashir claimed that during their meetings, the government had promised that no such decisions would be made. "He (the minister) has promised us that import duty on foreign apples will be increased but they have done the opposite. We will be meeting government representatives soon to express our concerns so that these decisions are reversed," said Bashir.

As per the FTA, for which negotiations concluded on Monday, India will allow imports of up to 32,500 tonnes of New Zealand apples in the first year at 25% customs duty. The quantity will go up gradually to 45,000 tonnes by the sixth year.

"Cutting apple import duty from 50% to 25% for New Zealand under the India–NZ FTA is a direct blow to apple farmers. With imports already at 22.5% of domestic output, cheaper foreign apples will further crush growers in J&K and HP," said Muhammad Yusuf Tarigami, the CPI(M) legislator from Kulgam district of southern Kashmir.

J&K accounts for around three quarters of India’s apple production. The horticulture industry in J&K is around Rs 10,000 crore and contributes around 9% to the region's GDP. Kashmir annually produces more than 2 million tonnes of apples; the production increases to 2.5 million tonnes in some years. As per government data, around 3.5 million people, nearly half of Kashmir's population, is directly or indirectly associated with the apple industry.