FTA Apple Imports Marginal, Govt Says; No Impact Study Yet on Kashmir Growers

   

SRINAGAR: The Jammu and Kashmir government on Monday said apple imports from New Zealand under the proposed India–New Zealand Free Trade Agreement would remain limited in scale, even as it acknowledged that no formal study has yet been conducted to assess the impact of such imports on local growers, prices or employment in the Union Territory.

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Responding to a starred Assembly question, the Agriculture Production Department said the agreement provides for a tariff-rate quota under which import duty on New Zealand apples would be reduced from 50 per cent to 25 per cent, but only within a fixed quota beginning at 32,500 metric tonnes in the first year and rising to 45,000 metric tonnes over six years. Imports beyond this quota will continue to attract the full duty.

The government sought to allay concerns from orchardists by placing the import volumes in perspective, stating that New Zealand apple imports account for less than two per cent of Jammu and Kashmir’s total production. In 2023–24, imports stood at 0.97 per cent of the Union Territory’s output, rising to 1.46 per cent in 2024–25. At the national level, the share was even lower, ranging between 0.77 per cent and 1.17 per cent of India’s total apple production over the same period.

Despite these figures, the government conceded that no dedicated study has been carried out to evaluate the direct impact of such imports on local production, market prices, sales patterns or employment, leaving a key concern of growers unaddressed.

Officials reiterated that the apple industry remains the backbone of Jammu and Kashmir’s economy, with production rising steadily from 20.40 lakh metric tonnes in 2022–23 to 21.10 lakh metric tonnes in 2024–25. Exports, however, have shown a declining trend, dropping from 18.14 lakh metric tonnes to 13.34 lakh metric tonnes over the same period.

To strengthen the sector, the government said it is focusing on productivity enhancement, post-harvest management and market integration. High-density plantation programmes have been expanded, covering 128 hectares in the current financial year, while 67 controlled atmosphere storage units with a combined capacity of 2.92 lakh metric tonnes have been established to reduce distress sales and stabilise prices.

Cold chain infrastructure has also been augmented through the deployment of 26 reefer vans, while support for grading, packaging and food processing is being extended to growers. Market access initiatives include the establishment of 24 fruit and vegetable mandis across the Union Territory, with 13 more under development, and integration of 17 mandis with the e-NAM platform to enable electronic trading.

The department said more than 55,000 farmers, traders and other stakeholders have been registered on the platform so far, with cumulative trade volumes crossing 29 lakh quintals and transactions exceeding Rs 1,700 crore.

In addition, financial assistance and subsidies are being provided under multiple central and UT-level schemes, including support for orchard development, irrigation infrastructure, organic farming, processing units and marketing facilities. Credit-linked grants and seed capital assistance are also being extended to individual entrepreneurs and self-help groups under food processing schemes.

Efforts to strengthen agri-business ecosystems are underway, with two Agri Business Centres being set up in collaboration with agricultural universities in Jammu and Kashmir, expected to become operational in the next financial year.

On regulatory safeguards, the government clarified that decisions on import duties and trade policy fall within the domain of the Union government, but maintained that it remains committed to protecting the livelihoods of orchardists while promoting the long-term sustainability of the horticulture sector.

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