Himachal chief minister Sukhvinder Singh Sukhu on Thursday said he will take up the issue regarding the recent trade agreement with Prime Minister Narendra Modi, saying that the concessions on apple imports could adversely affect Himachal’s apple economy.
“I will write a letter to Prime Minister Narendra Modi on this issue. The Himachal’s apple farmers should not suffer,” he said.
The recently signed Free Trade Agreement (FTA) between India and New Zealand, has reduced the import duty on apples from New Zealand to 25% from 50%, leaving the apple growers of the state worried as the influx of cheaper New Zealand apples in the market will cause local apple prices to fall.
Apples are imported into India from 44 countries, but the biggest challenge for Himachali growers comes from imports from Turkey, Iran, and Afghanistan. These countries benefit from SAFTA (South Asian Free Trade Area) agreements, allowing their apples to enter Indian markets with minimal duties. As a result, foreign apples are sold at lower prices, making it difficult for Himachali growers to compete. This has led to declining profits for local orchardists, who are struggling with rising costs of production, packaging, and transportation.
Harish Chauhan, convener of the Joint Kisan Manch, said, “The FTA comes as a death warrant for the apple growers of Himachal. There is a serious need for the Centre government to rethink the move to safeguard the interest of the farmers in hill states where the economy depends mostly on apple farming.”
{{/usCountry}}Harish Chauhan, convener of the Joint Kisan Manch, said, “The FTA comes as a death warrant for the apple growers of Himachal. There is a serious need for the Centre government to rethink the move to safeguard the interest of the farmers in hill states where the economy depends mostly on apple farming.”
{{/usCountry}}Deepak Singha, president of the stone fruit association and an apple orchardist, said, “The farmers are worried as New Zealand is the first country to get a discount and even in other FTA with other countries there is a fear that this concession will continue which will definitely crash the prices. This is a serious concern as if such discounts are extended to the countries like Iran which sells its apple at a very low rate that will mean doom for the apple economy in the state.”
Trade data shows that India already imports over five lakh metric tonnes of apples annually from multiple countries, with New Zealand supplying roughly 30,000–32,000 metric tonnes in recent years — about 6% of total imports — despite facing a 50% duty so far; orchardists fear that the concessional rate will sharply expand this share once quotas begin to rise in subsequent years.
Sohan Thakur, president of the Apple Growers Association, said, “The move could become a precedent for future trade deals, exposing Indian horticulture to low-cost imports without adequate safeguards. The production costs in Indian hill states are significantly higher than in New Zealand, where yields per hectare are much greater, giving imported apples a decisive pricing edge in wholesale markets.”