Shimla: As budget session begins, several states and key sectors have pinned high hopes on the upcoming budget to be announced by Finance Minister Nirmala Sitharaman on Saturday (February 1). And Himachal Pradesh being the second largest producer of apples in the country, the apple growers here are expecting the government to announce a 100% import duty on apples.
It has been alleged that low import duty has led to the substantial losses to the apple growers. Notably, Prime Minister Narendra Modi had first promised to enhance import duty on apples during his election campaign rally in Solan in 2014. However, the demands have allegedly remained unfulfilled so far.
Why is Himachal's apple industry seeking 100% import duty?
Himachal Pradesh has been growing apples for over a century now. Every year, the state produces 2.5 to 4 crore apple boxes, with an estimated annual industry turnover of Rs 3500-4500 crore. Apart from Himachal, apples are also grown in Kashmir (country's largest producer), Uttarakhand and Arunachal Pradesh.
However, lack of irrigation facilities, difficult terrain, high production costs, and hassles in transportation have put the local apple growers on the backfoot. For, they alleged that all these factors have made it difficult for them to compete with the cheaper apples imported from countries like China, New Zealand and the US.
Reportedly, apples being imported to India from these countries are better in terms of quality. It is comparatively cheaper, with a longer shelf life. "The reason is that they use latest technology for apple cultivation, and they also have better irrigation facilities. The cost of production is also low there. In such a situation, the apple growers of Himachal want import duty on foreign apples to be 100 percent. If there is 100% import duty, other countries will be discouraged from exporting apples and the gardeners in Himachal will get good price for their produce," said an orchardist.
The apples imported from Turkey (via Afghanistan, Pakistan) are duty-free and consequently cheap, affecting the local growers here.
Currently, India imposes a 50% import duty on apples, but farmers have argued this is not sufficient to protect their livelihoods. Apple cultivation supports nearly four lakh families in Himachal. The land holdings of gardens here are small and problems are galore. In view of the prevailing situation, the gardeners have import duty of apples should be made 100%, so that export is discouraged and Himachal's apples get good prices in the markets in India.
"Apart from import duty hike, we also demand to increase the subsidy on horticultural equipment. Overall, this will be beneficial for Himachal and other apple producing states in the country," feels Kotkhai orchardist Vijay Khandolta.
Harish Chauhan, convener of Himachal Pradesh Joint Farmers Forum, says, "Himachal's apples compete with the produce from 44 countries. Himachal's apple growers need government support. They want 100% import duty. The minimum support price of apples should also be made Rs 100 per kg."
Orchardist Rajiv Jokta also sought increased subsidies on horticultural equipment including nets. This apart, we want GST relief on apple packing materials, Jokta said.
Progressive orchardist Sanjeev Chauhan said, "At present, horticulture is turning into a loss-making deal. Himachal has been producing apple for more than hundred years now, but if there is no government support, then orchardists will not be able to survive for long. Himachal is yet to reach the level to compete with foreign apples."
Echoing similar views, gardener Hitesh Dewan said, "Foreign apples are always available in the market across the country. Himachal's apples are not in a position to compete with foreign apples. The central government should consider the problems of Himachal's apple growers and provide relief in the budget."
Earlier, the Congress party had accused the Narendra Modi government of decreasing the import duty on apples from 75 per cent to 50 per cent. Congress leader and Theog MLA Kuldeep Rathore has said, "Central government should increase the import duty from 50% now to 100%. World Trade Organization agreement allows import duty to be raised up to 75 percent. The state government has also formally requested the Central Finance Ministry to raise import duty."
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