Apple farmers and political activists in Indian Kashmir staged a protest against the Indian government’s decision to remove an additional 20% duty on apples imported from the US. They argue that the move to import cheaper American apples will negatively impact local growers. The decision to remove the duty was part of a resolution to one of the six World Trade Organisation disputes that India and the US resolved during Prime Minister Narendra Modi’s visit to Washington in June. This additional duty was imposed by India in 2019 as a retaliatory measure in response to increased US tariffs on Indian steel and aluminium products.
Bashir Ahmad, president of the Kashmir Valley Fruit Growers and Dealers Union, spoke out against the decision at the protest in Srinagar. He called on the government to reconsider the decision, pointing out that reducing the tariff will adversely affect the livelihoods of over 3 million people who depend on the $1.2 billion apple industry in Kashmir. According to Ahmad, the industry has already suffered a 40% loss this year due to bad weather, and the import of apples has exacerbated their challenges.
The Himalayan region of Kashmir accounts for more than two-thirds of India’s apple output, producing 1.7 million tonnes of apples in the fiscal year 2021-2022. However, imports of US apples have declined significantly in recent years, with nearly 4,500 tonnes imported in the fiscal year 2022-2023, down from nearly 128,000 tonnes in the 2018-2019 fiscal year.
Commerce Minister Piyush Goyal clarified that only the additional duty has been relaxed, and the existing 50% duty and minimum import price of 50 rupees per kilogram will remain in place. The government maintains that the reduction in duty will not have a negative impact on domestic apple producers. It believes that the move will promote competition and ensure better quality for consumers, emphasizing that US apples will now compete on an equal playing field with other countries.
In addition to the US, India also imports apples from Turkey, Iran, Chile, Italy, and New Zealand.
