Tax-free import of Iranian apples has Kashmiri growers worried

Growers say the quantum of Iranian apples entering India was increasing by the day, which could eat into the Kashmiri apple’s market share in the coming years unless the imported fruit is taxed

Tax-free import of Iranian apples through Afghanistan and the Wagah border could adversely affect the Kashmiri apple business in India, say local growers.

Each year, around 1.5 to 2 lakh metric tons of apples are stored in cold stores across Kashmir in an effort to heap rich dividends during the off season, especially March, April and May when their market price soars. (Waseem Andrabi / HT)

Growers say the quantum of Iranian apples entering India was increasing by the day, which could eat into the Kashmiri apple’s market share in the coming years unless the imported fruit is taxed. The Union territory’s horticulture department has already flagged the issue with the Centre.

Each year, around 1.5 to 2 lakh metric tons of apples are stored in cold stores across Kashmir in an effort to heap rich dividends during the off season, especially March, April and May when their market price soars.

Ajaz Ahmad, a grower from Shopian in south Kashmir, said. “Tax-free apples coming via Afghanistan have had a negative impact on the sale of the Kashmiri variety. The government should shut down this free trade as it will ruin the prospects of Kashmiri growers. We had been expecting to sell our apples in cold storages for ₹130 to ₹150 per kilogram but the duty-free apples from Iran have brought down the prices.”

Horticulture is the backbone of the J&K economy as it contributes around 8% towards the gross domestic product (GDP) of the Union Territory besides generating employment avenues for the younger generation. As per official data, seven lakh farming families comprising 35 lakh people are directly or indirectly associated with the sector. At present, Kashmir produces around 23 to 24 lakh metric tons of fruit.

Kashmir Cold Store Association president Maajid A Wafai said, “For the last three months, we have been going from pillar to post to get import of apples via Afghanistan stopped, to no avail. On one hand, the Prime Minister is asking people to become self-reliant and on the other hand trade that has been flourishing in the region for decades is being destroyed.”

Wafai said growers are not opposed to importing apples from Iran or other countries. “Our only demand is that duty or cess should be imposed on apples coming from Iran via Afghanistan. If growers do not get a good price for fruit outside the state mandis, they will stop using cold stores. A large number of cold storage facilities have cropped up across the Valley in the last few years and hundreds of people will loose their livelihoods should the storages become defunct.”

Kashmir Valley Fruit Growers’ Union president Bashir Ahmad Bashir said, “We have also raised the issue with Delhi chief minister Arvind Kejriwal. Once tax-free apples from Iran reach here, Kashmiri growers will suffer losses. At present, apples are not in season but we want to level the playing field for the next season.”

Nothing to worry about: Horticulture director

A senior manager, working at a cold store in north Kashmir’s Baramulla, said, “We still have 5,000 to 8,000 metric tons at the store. Now, growers have starting sending their fruit to different mandis. They did not send the produce earlier as the Iranian apples that had come via Afghanistan had de-stabilised the market.”

Recently, Kashmiri fruit growers and owners of cold stores and inter-state fruit and vegetable unions of hilly states (Himachal Pradesh and Uttarakhand) had met in Pulwama.

Horticulture director Ajaz Ahmad Bhat said the Kashmiri apple is being sold in the Kashmiri market for ₹120 per kilogram.“At present, there are no Iranian apples in mandis.A very limited number of trucks had come,” he said.

Bhat said apples from Kashmir were fetching a good price in different mandis.There is nothing to worry about this issue.”