US apple may upset HP cart, fear orchardists

Apple growers are deeply concerned about the US demand to reduce tariffs on American goods, including agricultural products. They are urging the government not to lower the import duty on Washington apples, as it would severely harm local producers.

Fear sale crunch as tariff cut looms

Orchardists fear reducing import duties on Washington apples will flood the market with cheaper, high-quality imports

This will severely undercut domestic premium apple sales, threatening livelihoods

The import duty on Washington apples was already reduced from 70 per cent to 50 per cent in 2023, and any further reduction could significantly shrink the market for premium domestic apples.

Local growers view the high-quality and uniformly-sized Washington apples as a major threat. They fear that further reducing the import duty could flood the Indian market with imported produce.

A look at the data shows their concerns are well-founded. In 2018-19, before the government raised the import duty from 50 per cent to 70 per cent, apple imports from the US stood at around 1.28 lakh metric tonnes. After the duty hike, imports plummeted to just 4,486 MT by 2022-23. In monetary terms, imports dropped from $145 million to a mere $5.27 million over five years. But after the duty was reverted to 50 per cent in 2023, growers report that imports have surged nearly 20-fold in a short period.

Any further reduction would make Washington apples available at prices comparable to or even lower than premium domestic apples. This prospect is causing significant anxiety among local growers. Washington apples and local premium apples are primarily consumed by higher-income groups, who are highly brand-conscious.

Harish Chauhan, president of the Fruit, Vegetable, and Flowers Growers Association, said, “If Washington apples are available at roughly the same price as local premium apples, or even slightly higher, consumers will likely choose the imported ones. Even if our apples are equally nutritious or juicy, competing with the Washington apple brand will be tough, as many consumers believe imported products are superior.”

Local growers are already struggling to compete with non-premium Iranian apples, which are sold at prices as low as Rs 50-60 per kg in the Indian market. This makes it nearly impossible for non-premium domestic apples to fetch remunerative prices. The high cost of production in hilly terrains, where mechanisation is impractical, along with rising input, labour and transportation costs, further disadvantages local growers.

Lokinder Bisht, president of the Progressive Growers Association, warned, “Reducing import duties will be highly discouraging for growers striving to produce quality fruit.”

Additionally, growers fear that if India succumbs to US pressure, other apple-exporting countries may also demand similar tariff cuts. This comes at a time when growers are advocating for an increase in import duties from 50 per cent to 100 per cent to protect their livelihood. Erratic weather, skyrocketing input costs and cheap imports from countries like Iran and Turkey have already made apple cultivation challenging. Chauhan emphasised, “Reducing import duties will be a massive blow to lakhs of families dependent on apple cultivation, directly or indirectly. Slogans like ‘vocal for local’ will lose meaning if the government fails to safeguard the livelihood of its own people.”