CHANDIGARH: The Union Government's decision to import 'Washington Apples' from the US at proposed rate of Rs 80 per kg has caused anxiety among apple growers in Himachal Pradesh.
Himachal's apple growers are already reeling from the impact of natural calamities that hit the hill state.
Talking to TNIE, Harish Chauhan, convener of the Sanyukt Kisan Manch, noted that lower prices of Washington apples will negatively impact the local apple economy.
Rejecting arguments that apples from United States were landing at Rs 75 per kg in India prior to the new India-US trade deal, Chauhan said, "the landing cost of the Washington Apple in India was 28 US dollar (approximately Rs 2,570) for an 18 kg box, which works out to be Rs 143 per kg. Now the import duty on the apple from US has been reduced from 50 per cent to 25 per cent, but the Minimum Import Price (MIP) has been increased from Rs 50 per kg to Rs 80 per kg, so apples will effectively cost around Rs 100 per kg. US apples will cost Rs 43 less per kg.’’
Chauhan claims, "The central government should not have reduced the import duty thus due to this we will now suffer losses. Last year more than 60,000 metric tones of apples was imported from US; in 2024, it was 37,000 metric tones; 7,000 metric tones in 2023 and 5,000 metric tones in 2022 as India had then levied 20 per cent extra duty."
He added that is US apples are sold at the price of Rs 100 per kg, domestic apple growers will not have competitive advantage as both imported and local apples will be within the same price bracket.
"We fear that with now import duty reduced the US apples might cross over the 2018 import figures," he said.
Chauhan also said that the cost of maintaining controlled atmosphere stores for local premium apples will further discourage sellers from choosing domestic varieties. "Nobody will buy local premium apples at Rs 90 per kg, and also bear storage and transport charges which total to around Rs 40 per kg. Local premium apples will retail at Rs 130-140 per kg, which is higher than the price of US apples," he said.
Lokinder Bisht, president of Progressive Growers Association (PGA), said that domestic premium apples sell between Rs 100 to Rs 150 per kg. He said that if US apples are available at almost the same price, then consumers will opt for imported apples. He also noted that the trend will spillover to lower-grade apples as it will sell for far lesser prices.
"The government should have imposed of Minimum Import Price of Rs 100 per kg to save the domestic apple grower. Unlimited imports will pose a big threat to the economy," he said.
Meanwhile, some growers feel the deal will have very little effect on the local apple economy.
A leading apple grower said that the local premium apple is good enough to compete with any foreign apples. Instead of demanding protection, the apple growers should seek subsidies, and better planting material from the government to help them increase our production and enhance quality.