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Mehbooba Mufti calls for JK CM intervention on FTAs; Expresses fear of dilution of apple import duties
PDP leader Mehbooba Mufti and Himachal Pradesh apple growers are raising serious concerns over potential import duty cuts on apples in upcoming FTAs with Europe, the US, and Chile. They warn that further reductions, following a previous cut with New Zealand, could devastate the region's apple economy and livelihoods.
Expressing serious concern over reports of possible dilution of import duties on apples under proposed Free Trade Agreements (FTAs) with Europe, the United States and Chile, PDP (Jammu and Kashmir People's Democratic Party) leader Mehbooba Mufti on Saturday warned through her official X handle that further tariff cuts could severely damage the Valley's apple economy and threaten the livelihood of lakhs of families.
She cautioned that a previous 25 per cent duty reduction, linked to trade agreements with New Zealand, had already exposed domestic producers to what they termed "unfair imports", thereby impacting market prices.
"Deeply concerned that Apple import duties may be diluted in FTAs with Europe, the US & Chile, repeating the damage done by the India-NZ FTA. A 25% duty cut has already hurt Kashmir's apple growers, exposing them to unfair imports. Flooding markets risks destroying J&K's horticulture backbone that sustains 15 lakh families. This is not just about fruit but livelihoods.", her X post stated.
Urging immediate policy intervention, she called on the Jammu and Kashmir chief minister to flag the issue with the Centre to safeguard growers' interests. "@CM_JnK must urgently take this up with GoI to protect our growers.", she posted. Earlier on Saturday, apple growers from Himachal Pradesh raised strong objections to the Indo-New Zealand Free Trade Agreement, alleging that reducing the import duty on apples from 50 per cent to 25 per cent will severely impact farmers across hill states, including Himachal Pradesh, Uttarakhand, and Jammu & Kashmir.
A delegation of the Himachal Pradesh United Farmers' Organisation met State Horticulture, Revenue and Tribal Development Minister Jagat Singh Negi on Saturday, demanding immediate intervention by the Centre to safeguard domestic apple producers.
Speaking to ANI, the convener of the farmers' delegation, Harish Chauhan, said the agreement poses an existential threat to hill-state orchardists.
"The reduction of import duty from 50 per cent to 25 per cent under the Indo-New Zealand agreement will cause massive economic losses. If duties are further reduced to zero under future trade deals with Europe, the US, or other countries, it will prove to be nothing short of a death warrant for apple producers of hill states," Chauhan said.
He warned that Himachal Pradesh's apple-based economy, valued at nearly Rs 6,500 crore, and the combined Rs 26,000 crore economy of Himachal Pradesh, Jammu & Kashmir and Uttarakhand could collapse if cheaper imported apples flood the market.
"We get only one crop a year. If foreign apples dominate the market, families will not survive. Farmer distress and suicides could begin in hill states, something never seen before," he added.
The farmers are demanding that the import duty on apples be raised to 100 per cent and that a Minimum Import Price (MIP) of Rs 100 per kg be enforced immediately. Chauhan alleged that, despite officials' assurances, decisions were being made without consulting farmers."We are invited for discussions, but decisions are taken behind our backs. It feels like a stab in the back," he asserted.
Responding to the concerns, Horticulture Minister Jagat Singh Negi said the state government would stand with farmers and take the issue to the Centre.
"Recently, the Central Government has signed a contract and trade agreement with a new government, under which the import duty on apples has been reduced from 50 per cent to 25 per cent. This is even though when Prime Minister Narendra Modi visited Himachal Pradesh during the election campaign, he had promised that if the BJP formed the government, the import duty on apples would be increased to 100 per cent. At that time, the duty stood at 75 per cent, and he had assured that it would be taken to 100 per cent. Later, it was reduced to 50 per cent, and now this latest decision has been taken, which is an attempt to ignore the interests of farmers," said Negi.
He added that the duty had earlier been reduced from 75 per cent to 50 per cent and has now been cut further, calling it an attempt to ignore farmers' interests."
A delegation met me today regarding this issue and expressed deep concern. We discussed our future strategy. They demanded that a meeting be held with the Chief Minister, including farmers, stakeholders, Members of Parliament from apple-growing regions, and all concerned parties, and that time be allocated to meet the Prime Minister to find a solution. If no solution emerges from there, it will become a very serious challenge for orchardists." Negi added.
Warning of broader global implications, Negi said, "This will not stop here. Even former US President Donald Trump has already made announcements in this regard. This is a major challenge for our orchardists, as similar pressure may also come from Europe in the near term. If the Government of India reduces import duties on agricultural imports, starting with New Zealand, it will become even easier for the United States to demand similar concessions, followed by China and other Asian countries. In that situation, India's apple growers will be left with nothing."
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Source: EconomicTimes
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