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Himachal orchardists fear Washington, Iranian apples may steal the show
Some Indian companies have signed agreements to buy Iranian apples for as low as ₹ 20/kg, while Washington Apples, are being sold for ₹4,000 per 20-kg box
Already reeling due to a steep fall in prices, orchardists in Himachal are facing a double threat from Washington and Iranian varieties of apples, with the former being sold at a premium, and the latter, which is cheaply priced, ready to flood the markets.
For the last two years, homegrown apples have been facing a stiff competition from duty-free fruits being imported from Iran under the India-Afghanistan Free Trade Agreement. Large consignments of apples are also shipped to ports in Gujarat and Maharashtra, while some are routed to markets in north India through the Wagah border.
It is mostly the Red Delicious variety grown in Iran, Uzbekistan and Turkmenistan that makes its way into India. Despite numerous representations to the Centre by orchardists in Jammu and Kashmir, Uttarakhand and Himachal Pradesh duty-free import of fruits has not been rolled back.
Impose non-tarrif barriers: Orchardists
Iran had a bumper apple crop this year, due to which it is expected that the variety will flood the Indian market this year.
Besides, the variety is cheaply priced due to US sanctions. Some Indian companies have signed agreements to buy Iranian apples for as low as ₹ 20/kg.
“These apples will start arriving in September. The government should immediately impose non-tariff barriers to stop the import of Iranian apples. If timely measures are not taken, the apples growers of Himachal, Uttarakhand and J&K will be ruined,” said Parkash Thakur, former vice-chairperson Horticulture Produce Marketing and Processing Corporation (HPMC) and former Agricultural and Processed Food Products Export Development Authority (APEDA) director.
“If the import of other goods can be stopped under the anti-dumping laws why not Iranian apples” says said.
Pricing discrepancy
With the apple markets crashing, the price of apples has fallen to ₹1,000- ₹1200 per box. Apples boxes weighing 22-35 kg are being sold for ₹500 to ₹1,200 in local markets, whereas consumers in cities are paying much more.
On the other hand, the same strain of delicious red apples, branded as Washington Apples, are being sold for ₹4,000 per 20-kg box by the same middlemen. This because the imported apples come at a pre-determined price, which is decided and paid in advance at the time of import.
Abhinav Jaggi, a Delhi-based businessman, who owns a cold storage chain, says, “This year Iran, Uzbekistan, and Turkmenistan had a bumper crop. Last year, Himachal saw a low yield, so Iranian apples became attractions for both wholesalers as well as retailers as the varieties are priced low.”
The state government is blaming poor quality of apples for the low prices, but farmers say they are not getting their due for even premium quality apples.
‘Cartelisation to blame’
Fruit growers say cartelisation is responsible for the drop in price and have demanded that the nexus between traders and commission agents who manipulate the market be arrested.
“Farmers should also try to improve the marketing setup,” said Thakur, adding that if farmers do not come together to grab the bull by the horns, their future will remain bleak.
Successive governments in Himachal have made efforts to help farmers to market their produce, but unfortunately these government agencies cannot compete with the private sector because of the inherent problems in the government sector.
Corporations like HPMC were set up to meet the post harvest needs of the farmers. HPMC was the first ones to set up cold stores at terminals markets such as Madras, Bombay and Delhi so that the farmers could store their produce in case they did not fetch good prices in the running market.
Apple grading machines were set up in the growing regions to standardise grading and packing. The ₹60,000-crore apple economy sustains 1.75 lakh families. Of 12 districts, apple is grown in seven districts with Shimla, Kullu and Kinnaur districts being major apple producing areas.
