Kashmir growers concerned as Centre lifts duty on US apples, walnuts

On September 5, the Union finance ministry in an order lifted additional duties on apples, almonds, chickpeas and walnuts

The fruit growers in Kashmir are concerned after the Centre lifted additional duties on apples, walnuts and almonds imported from the United States. They fear the lifting of taxes will have a direct impact on the fruits produced in Kashmir.

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For three to four years, the Valley-based fruit growers have been grappling with back-to-back problems in the market. Despite good production, the growers didn’t fetch good rates for their produce and this year, though rates are good, production is less than 40 percent of what it was the previous year. Even the walnut kernels didn’t fetch handsome rates in the mandis.

On September 5, the Union finance ministry in an order lifted additional duties on apples, almonds, chickpeas and walnuts.

“We have been in crisis for many years and the lifting of additional duties from US apples will hit our apple industry and the growers will again face the problems,” said Kakajee, president of Fruit Mandi Sopore, which is the second largest fruit mandi of Asia after Azadpur Mandi in Delhi. “We hope the central government will reconsider the decisions as J&K’s and Himachal Pradesh’s economy is based on the fruit trade,” he added.

Ahsan Bhat, a trader from Shopian, said, “The government should always give priority to the products of the country and if taxes are reduced, there will be a direct impact on our apple. So far, our apples are fetching handsome rates but don’t know what will happen next month.”

In 2019, the Centre imposed additional taxes on certain products after the United States raised taxes on certain items exported from India.

Even the walnut growers are worried about the lifting of additional taxes. “For the past three years, the walnut market has been witnessing a slump and usually we don’t get even 50 per cent of rates that we used to get three to four years ago. This will be another setback for us,” said walnut grower Mohammad Iqbal of Mayain, Uri.

The mainstream politicians have urged the government to reconsider the decision as it impacts the growers in Kashmir.

“GOI’s decision to remove additional duties on apples, walnuts & almonds will have a devastating effect on local growers in J&K already grappling with huge losses post 2019. Hope @PMOIndia reconsiders,” said former J&K chief minister, Mehbooba Mufti in a tweet.

The Democratic Progressive Azad Party chief spokesman Salman Nizami said, “The move is likely to affect the apple and walnut industry of Kashmir, which is the main source of their economy. If the extra tariffs are lifted, the American apple and walnut may dominate the local market evident from the past and Prime Minister Narendra Modi must take the move cautiously to ensure local growers are not affected.”

“India has lifted extra tariffs on US products, including walnuts and apples, initially imposed in retaliation to US steel and aluminium tariffs. “We are concerned about its impact on local growers in J&K, especially after huge losses in 2019. Hope Prime Minister keeps the interests of J&K farmers in mind and do something about it!” he added.

Kashmir is India’s largest apple grower, fetching revenue over ₹8,000 to ₹10,000 crore to the UT, and contributing around 8-10% of its gross domestic product. The UT produces around 20 lakh metric tonnes of apples per year. Around seven lakh farming families (approximately 35 lakh people) are directly or indirectly associated with the horticulture sector. Kashmir produces 80% of the country’s walnuts.