Indian Apple Growers Fear New Zealand Imports Flood Market After Duty Cut in New FTA
January 6, 2026
Apple growers in Kashmir and Himachal Pradesh face a tough future after India and New Zealand agreed to reduce apple import duty from 50% to 25% under a new free trade agreement (FTA). Izhan Javed, an apple dealer and spokesperson of the J&K Fruits and Vegetables Processing and Integrated Cold Chain Association, told The Hindu, "Indian farmers rely on controlled-atmosphere cold storage to sell apples during the off-season, when they earn prices that sustain their families for the entire year. With reduced import duty, fresh New Zealand apples will enter Indian markets at lower prices, directly undercutting Indian apples stored in cold facilities."
Currently, Kashmir has 397.08 lakh metric tonnes of apples stored in 92 cold storages, which sustain farmers year-round. Javed warns the FTA "threatens to make these investments economically unviable," risking the entire post-harvest ecosystem built with public and private capital. "Trade deal has the potential to destroy off-season price stability and push farmers back into distress sales," he added.
The newly introduced Gala apple variety in Kashmir stands to lose first. "New Zealand has been producing these varieties for over 50 years, with 8–9 times higher productivity and much lower costs," said Javed. Indian apple farmers typically work 0.40 hectares, while New Zealand, the U.S., and EU orchardists operate 50-plus hectare farms with heavy mechanisation and large subsidies, resulting in 50% lower production costs. "It is no longer fair competition," Javed concluded.
In Kashmir, 15 lakh families depend on apples, generating ₹30,000 crore yearly. Himachal Pradesh, producing apples worth ₹5,000-6,000 crore and supporting 1.5 lakh families, shares the concern. Ravinder Chauhan, president of the Apple Growers Association of India, said, "The planned cut in import duty to 25% is expected to result in substantial market share loss and lower prices, plunging growers into greater financial hardship."
Congress MLA Kuldeep Singh Rathore added, "Implementation of this FTA will set a dangerous example. Other top apple exporters like the USA, Chile, and Italy may demand similar deals, spelling disaster for Himachal Pradesh’s farming community."
Growers remain vigilant as similar deals with other apple-exporting countries are under watch. The fear is clear: cheap imports could flood the market, collapse the domestic apple industry, and push farmers into distress.
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Tags:
Apple Growers
New Zealand Imports
Free trade agreement
Import duty
Kashmir Apples
Himachal pradesh apples
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