KO File Photo By Abid Bhat
Srinagar- In a big relief to apple growers, the central Government has introduced Minimum Important Price (MIP) for apples—which will bar apples from other countries without tax.
The order has brought cheer to apple growers of the valley who were repeatedly pleading the government not to allow tax free apples.
Kashmir based apple growers have been expressing concern over what they term as an “illegal import” of Iranian apple via Afghanistan to India. Around 80 apple laden trucks were coming from Afghanistan daily to India affecting the trade balance as import from Afghanistan was duty-free. However, after the Taliban takeover of Afghanistan, Kashmiri growers assumed this year duty-free Iranian apples wouldn’t be available. But they were proven wrong.
“The duty free import of apple from other countries, especially from Iran, was decreasing the rate of apples being produced here. So, it is good news,” said Fayaz Ahmad Malik, president of Sopore Fruit Mandi.
Malik further said it was the long pending demand of the apple growers to levy taxes on apple from other countries and they growers welcome it.
The government has amended its import policy for apples by introducing MIP. According to an official notification issued by the Ministry of Commerce and Industry, import of apples is now prohibited and import is free only if CIF value is above Rs 50 per kg.
“In exercise of powers conferred by Section 3 read with Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, read with paragraph 1.02 and 2.01 of the Foreign Trade Policy 2023, as amended from time to time, the Central Government hereby amends the import policy condition under ITC(HS) 08081000 of Chapter-08 of ITC (HS), 2022, Schedule-I (Import Policy).” reads the notification, a copy of which lies with Kashmir Observer.
Import of apples under ITC (HS) 08081000 is now ‘Prohibited’ wherever the CIF Import Price is less than equal to Rs. 50/- per kilogram. However, these Minimum Import Price (MIP) conditions shall not be applicable for imports from Bhutan.
According to Kashmiri apple growers, a 10 kg apple box from Iran costs around ₹600, while a box of the fruit of the same weight, grown in Kashmir, costs between ₹800 and ₹1,000. Other quality apple boxes of 10 kg, each, from north Kashmir’s Sopore and south Kashmir’s Shopian can cost between ₹1,000-₹1,200.
Speaking with Kashmir Observer, Mohammad Saidiq, President fruit traders Anantnag said that they are yet to go through the notification and they will come-up with the statement shortly.
Earlier, the apple growers maintained that a large quantity of Iranian apples would flood Indian markets, which ultimately was hitting the Kashmiri apple’s market share.
The growers claim that the free trade agreement (FTA) was being misused under the trade name of Afghan apple.
It may be noted that both Afghanistan and India are members of the South Asian Free Trade Zone (SAFTA) and hence they do not impose duty on imports from each other. However, Iran is not part of SAFTA but apples from there reach India via Afghanistan, bypassing import duties and taking the benefit from it.
Horticulture has a vital role to play in the economy of J&K. In 2019, Kashmir produced about 1.9 million metric tons of apples, the highest in the country.
The annual apple production in the Kashmir Valley ranges from 1.5 million to 1.8 million metric tons and the total cold storage capacity in the Valley is 1.20,000 to 1.30,000 MTs.
The industry generates revenue worth ₹10,000 crore annually which is roughly eight per cent of J&K’s Gross Domestic Product (GDP). On the contrary Tourism sector, promoted as mainstay of the Kashmir economy contributes less than six per cent to Jammu and Kashmir’s GDP.
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