Himachal Fights Apple Import Duty Cuts, Fears Market Ruin from NZ, US Deals

The Himachal Pradesh government has raised serious concerns over reduced import duties on apples following India's Free Trade Agreement with New Zealand, fearing similar concessions for the US could devastate local growers. Horticulture Minister Jagat Singh Negi warned that the arrival of New Zealand apples during Himachal's peak season would disrupt the market and depress prices for local produce. The state government also highlighted the financial strain of bearing the entire Rs 140 crore cost of the Market Intervention Scheme after the Centre drastically reduced its share. Chief Minister Sukhvinder Singh Sukhu plans to meet Union ministers and the Prime Minister to demand a rollback of duty cuts and protection for hill-state farmers.

Key Points: Himachal Protests Apple Import Duty Cuts in NZ, US FTAs

  • Duty on NZ apples cut from 50% to 25%
  • Fear US apple imports may get zero duty
  • Threat to 15 lakh apple-growing families
  • State bears Rs 140cr MIS burden alone
4 min read

Himachal flags concern over apple imports after New Zealand FTA; farmers fear lower duty from US

Himachal govt warns apple import duty cuts in NZ FTA, potential US deal could devastate local growers' market and prices. CM to take up issue with Centre.

"This will completely disrupt our market. - Horticulture Minister Jagat Singh Negi"

Shimla, January 13

Amid growing apprehensions among apple growers over reduced import duties following India's Free Trade Agreement negotiations with New Zealand and fears of duty cuts for imports from the United States, the Himachal Pradesh government on Tuesday held a high-level meeting with farmers and horticulture stakeholders to chalk out a response and raise the issue with the Centre.

The meeting, held in Shimla, was attended by Chief Minister Sukhvinder Singh Sukhu, Horticulture Minister Jagat Singh Negi, and representatives of various farmer and orchardist organisations.

The discussions centred on the rationalisation of import duty on apples from New Zealand from 50 per cent to 25 per cent and concerns that similar or even zero-duty concessions could be extended to the US and other countries in future trade agreements.

Speaking to the media after the meeting, Horticulture Minister Jagat Singh Negi warned that the timing of New Zealand apple imports could severely damage Himachal's apple economy.

"When fresh apples from New Zealand arrive in India, our apples stored in cold stores and controlled-atmosphere facilities will be coming into the market at the same time. This will completely disrupt our market," Negi said.

He added that with the expansion of high-density plantations in Himachal Pradesh, locally produced apples now start arriving as early as June, with peak season in July and August.

"If New Zealand apples compete with our produce during the peak season, Himachali growers will not get remunerative prices. This will not only harm Himachal but also affect apple-growing states like Jammu and Kashmir, Uttarakhand, and even the northeastern states that have recently taken up apple cultivation," he said.

Negi said representatives of several orchardist bodies, including Deepak Singha, Rakesh Singha and Sanjay Chauhan, participated in the meeting. He noted that BJP legislators were also invited but did not attend.

The minister also highlighted the financial stress caused by changes in the Market Intervention Scheme (MIS), launched by the Centre in 1987 to protect farmers in hill states.

"Under the MIS, the Centre earlier shared losses with the states. Last year, the allocation was reduced to a token amount of Rs 1 lakh. As a result, despite procuring nearly 98,000 metric tonnes of apples from growers, not a single rupee came from the Centre," Negi alleged.

He said the Himachal Pradesh government has had to bear a burden of around Rs 140 crore to continue the scheme.

"Because of the Centre's wrong policies, Himachal is likely to face even greater losses in the coming time," he added.

Minister Negi said the Chief Minister would soon meet the Union Agriculture Minister, Finance Minister and also write to the Prime Minister, demanding a rollback of duty cuts and protection for hill-state farmers. "We will strongly demand that the agreement with New Zealand be cancelled, as apple farming is the backbone of Himachal's economy," he said.

Minister Negi also recalled Prime Minister Narendra Modi's earlier assurances.

"When the Prime Minister campaigned in Himachal, the import duty was 75 per cent. He had promised to raise it to 100 per cent. Just like the promises of Rs 5 lakh and two crore jobs, apple growers too have been misled," he alleged.

He warned that if demands are ignored, farmers may be forced to take the path of agitation.

Joint convener of farmers' organisations Sanjay Chauhan said the issue raised by the Chief Minister was extremely serious.

"Under the negotiations between India and New Zealand, import duty on apples has been reduced from 50 per cent to 25 per cent. Duty on pears has been cut from nearly 50 per cent to 16.5 per cent, while kiwi imports from New Zealand will attract zero tariff," Chauhan said.

He said various organisations, including Himachal Kisan Sabha, Sanyukt Kisan Manch, Himachal Pradesh Apple Growers Association, and Progressive Growers Association, participated in the meeting.

Chauhan warned that future trade deals could further devastate apple growers.

"Talks are already on with the United States, where import duty on apples may be reduced from 25 per cent to zero. If similar agreements are signed with countries like Turkey, Italy or even China, nearly 15 lakh families in Himachal Pradesh, Jammu and Kashmir and Uttarakhand, whose livelihood depends on apple farming, will be pushed into deeper crisis," he said.

Chauhan said farmers have urged the Chief Minister to take a united stand with Jammu and Kashmir.

"We have suggested that Himachal and Jammu and Kashmir jointly approach the Centre. In developed countries, farmers receive heavy subsidies. Imports from New Zealand will cause massive losses to growers in Himachal, Uttarakhand and J&K," he said.

He added that farmers are willing to accompany the state government to Delhi if needed.

"This is not just a policy issue; it is a question of livelihood and survival for lakhs of families," Chauhan said.

- ANI

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Reader Comments

P
Priyanka N
As someone from Shimla, I've seen my family's orchard for generations. These FTAs sound good on paper for trade, but they destroy local livelihoods. New Zealand apples are cheaper because of their subsidies. Our government must protect our farmers first.
A
Aman W
While I understand the concern, we also need to think about consumers. If imported apples are cheaper, shouldn't the common person benefit? Maybe the solution is to help our farmers become more competitive with better technology, not just higher walls.
S
Sarah B
The timing clash is the real problem. Our cold storage apples hitting the market with fresh imports will crash prices. The government should at least negotiate a different import window to protect the peak season. It's basic market sense.
V
Vikram M
Promises made, promises broken. First 100% duty, now cuts to 25%. Our farmers are always at the receiving end. Himachal and J&K must unite and put pressure on Delhi. This is about the survival of hill state economies. ✊
K
Kavya N
It's not just apples. If kiwi is at zero duty, what about our growers in Arunachal or Sikkim? These FTAs need a holistic view of Indian agriculture, not just what looks good for foreign relations. Our food security is at stake.
M

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