EU trade deal: Reduced import duty on apple leaves growers worried

The reduced import duty on apple coming from European Union countries has left the apple growers worried and annoyed. “The Centre government has turned apple growers into a sacrificial lamb to secure better deals for other sectors. It’s a big blow to the local apple economy,” said Harish Chauhan, convener of the Sanyukt Kisan Manch.

In the trade deal signed with the European Union, the import duty on apple has been reduced from 50 to 20 per cent. The import has been capped at 50,000 MT annually initially and the Minimum Import Price has been fixed at Rs 80 per kg.

The import duty on pear and kiwi has also been reduced. Earlier, import duty on New Zealand apple was reduced from 50 to 25 per cent. “And the real mother of all deals is yet to come for us. The US, as and when FTA is signed with it, is going to demand even higher cut in apple duty. The situation looks extremely grim for the local apple economy,” he said.

Kuldeep Rathore, Congress MLA from the apple producing Theog Assembly constituency, couldn’t agree more with Chauhan. “The apple economy in the state is already tremendous stress due to escalating input costs and erratic weather. The Centre government is putting the livelihood of lakhs of families at risk by reducing the import duty instead of increasing it,” said Rathore.

Deepak Singha, president of the fruit growers association, points out that the youth of the state will be hit hard if fruit cultivation becomes unsustainable in the state. “Several educated youth have turned towards horticulture in recent times. They have taken loans to grow fruits using latest techniques and technologies to improve both quality and productivity. If the fruit cultivation becomes unsustainable, they will be in deep trouble,” said Singha.

Calling the development a big blow to the apple economy, Lokinder Bisht, president, Progressive Growers Association, said the government should at least provide subsidies on pesticides, equipment, and planting material if the reduction in import duty is unavoidable.

“Apple cultivation abroad is highly mechanised and subsidized. The government should at least offer some incentives and subsidies so that there is some level-playing field,” said Bisht. “Growers are trying to switch to modern methods of cultivation to improve quality and productivity. They need some hand-holding during the transition,” he said.