SRINAGAR/NEW DELHI: Fruit growers of Kashmir as well as opposition parties have expressed strong objections to the Centre’s decision to allow some relaxations on duty on apples imported from the United States, saying it will spell doom for the local industry.
Earlier In 2019, India had imposed a 20 per cent extra duty as a retaliatory measure on agricultural products, including apples, lentils and chickpeas, after the USA raised the duty on India’s aluminium and steel and exports on the grounds of national security in 2018.
In June this year, Prime Minister Narendra Modi had visited the USA and reached an agreement to remove the retaliatory measures of increasing duty which led to six litigation disputes at the World Trade Organization (WTO).
India has reportedly removed the retaliatory duty of 20 per cent but will keep the existing 50 per cent duty on apples under the most favoured nation category. Also, the US government reciprocated the same by removing the raised duty on metals. About 22 lakh tonnes of apples are produced in Kashmir annually and thousands of families are directly or indirectly associated with the apple industry in the Valley.
Mohammad Ashraf, president of Fruit Mandi in Shopian, said: “The reduction in custom duty on import of US apples will make it cheaper in Indian markets and the apples from Kashmir, Himachal and Uttarakhand can’t compete with cheaper US apples. The growers cannot get the cost of premier apples in such a scenario and will incur heavy losses.”
Ashraf also remarked that many countries, including Japan, charge 100 per cent cess to protect their own fruit and agriculture industry.
Opposition parties in J&K have slammed the Centre for the relaxation in import duty. Former J&K and NC president Farooq Abdullah said: “When the concessions were announced during the G20 summit, it wasn’t thought of what impact it would have on our economy. Not only J&K but it will impact Himachal Pradesh and Uttarakhand.”
Senior CPI(M) leader and former MLA Mohammad Yousuf Tarigami said dropping import duty on Washington apples is PM Modi’s G20 gift to Joe Biden. Senior Congress leader Priyanka Gandhi Vadra in Himachal Pradesh lashed out at the Centre saying the decision will harm apple growers.
Defending the Central government’s decision, the Additional Secretary in the Department of Commerce Peeyush Kumar said the removal of 20 per cent retaliatory customs duty on imported American apples will have "zero impact" on Indian farmers as the government has sufficient policy space to support growers if there is any implication of the move.