HP farmers hope for more funds, higher MSP in upcoming budget

The apple growers are demanding exemption on Goods and Services Tax (GST) on universal cartons and are expecting major relief ahead of Lok Sabha elections

With Himachal Pradesh chief minister Sukhvinder Singh Sukhu, who holds the finance portfolio, set to present the state budget on February 17 in the Vidhan Sabha, farmers say that they hope for increased funding and a hike in minimum support price (MSP) for the crops.

The area under apple has increased from 400 hectares in 1950-51 to 3,025 hectares in 1960-61 and 1,15,016 hectares in 2021- 22. Between 2007-08 and 2021-22, area under apple has seen a growth of 21.4% (HT File)

The state government has decided to introduce universal cartons for packaging of apples this year. The shift from telescopic cartons ( which can be adjusted up to load of 35kg) to universal cartons(fix cartons where apples are packed in accordance to weight) was aimed at transforming apple packaging. Under the new regulations, orchard owners will be required to use universal cartons, with options for 24kg and 12kg packaging.

The apple growers are demanding exemption on Goods and Services Tax (GST) on universal cartons and are expecting major relief ahead of Lok Sabha elections. “The exemptions in GST on apple cartons will help farmers reduce the production cost,” says former Shimla mayor and co-convener of the Sanyukt Kisan Manch Sanjay Chauhan. Himachal’s apple industry is valued at ₹6,000 crore and it constitutes about 48.8% of the area under fruit cultivation and about 81% of the total fruit production.

Retired joint director of horticulture department Deshraj Singh says that it is very important to improve the quality and marketing of apples and increase production. “The government should increase the grant for anti-hail net. Every year the apple crop suffers huge losses due to hailstorms. By using anti-hail net , 70 to 80% of the crop can be saved. There is a need to encourage the construction of small CA stores and processing units,” he said.

The area under apple has increased from 400 hectares in 1950-51 to 3,025 hectares in 1960-61 and 1,15,016 hectares in 2021- 22. Between 2007-08 and 2021-22, area under apple has seen a growth of 21.4%.

Growers want the government to increase the construction of controlled atmospheric stores (cold stores) in the state, which will prove helpful in better storage and in checking the fruit glut that often leads to the crashing of markets, resulting in low profits for producers.

About 57.03% of Himachal’s workforce has direct employment in agriculture. Along with its allied industries, it accounts for nearly 13.47% of the state’s gross value added (GVA) p. Out of the 55,673 sq km area, there are 9.44 lakh hectares of operational holdings, which are operated by 9.97 lakh farmers, with an average holding size is 0.95 hectares. According to the 2015-16 agriculture census, small and marginal farmers own 88.85% holdings, semi-medium and medium farmers own approximately 10.85% and large farmers own about 0.30%.

Progressive Growers Association vice-president Ashutosh Chauhan said that gardeners should get grants for setting up solar plants for running small cold stores and packaging houses. “There should be a system to help farmers- fruit growers and self-help groups in marketing their products through HPMC. Fruit growers should be given a subsidy by the government on iron angles for fencing the fruit orchards,” he said.

Himachal Fruit Vegetables and Flower Growers Association president Harish Chauhan emphasised on the government’s allocation of more funds to the universities for research.