Apple growers demand GST waiver, increase in import duty

Caught between the erratic weather and skyrocketing input costs, apple growers are hoping for some relief in the upcoming Budget. Claiming that profit margins have shrunk significantly over the past few years due to several factors, the growers are demanding that the GST on farm inputs such as pesticides, fertilizers, machinery, etc., should either be waived off or the lowest GST slab should be applicable to it.

“In ideal scenario, the GST should be waived off on farm inputs as the profit margins are shrinking. But if that’s not possible, the government should at least apply the lowest GST slab to the horticultural and agricultural inputs. It’s a straightforward way in which the government can provide some assistance to us,” said Lokinder Bisht, president of the Progressive Growers Association.

Harish Chauhan, president of the Fruit, Vegetable and Flowers Growers Association, agrees with Bisht. “Unlike the producers of the industrial products, growers and farmers can’t pass on the GST to end consumers and have to bear the entire burden. At a time when the apple economy is passing through a difficult phase, waiving off the GST or reducing it to the minimum would provide big relief to the growers,” said Chauhan.

Besides, the growers want the Centre to pay heed to their long-standing demand of raising the import duty on apple to 100 per cent from the current 50 per cent. According to them, 50 per cent import duty is impacting the local producers as apple from countries like Iran and Turkey is reaching Indian markets at low prices, making it tough for the local produce to compete.

“The government should put apple in the special category status and raise the import duty to 100 per cent. In case it’s not possible, the government should raise the Minimum Import Price of apple from Rs 50 to Rs 100. It would help the local producers to compete with the apple coming from Iran and Turkey,” said Bisht. The Centre has fixed the minimum import price at Rs 50, but the growers claim it hasn’t helped their cause.

Besides, the growers also want the Centre to allocate adequate budget for Market Intervention Scheme (MIS). Under this scheme, the state procures culled apple, mangoes and citrus fruits from the growers at fixed prices