Iranian apple imports in India: A serious issue that needs dealing with

Apple Cultivation in Jammu and Kashmir

India, considered the fruit and vegetable basket of the world, is the second-largest producer of apples with an annual production of 88.98 million tonnes from an area of 7.21 million hectares. There are three major regions leading the production in India with Jammu and Kashmir being the largest producer where apple cultivation is a highly profitable economic activity. A farm-based, labor-intensive, and commercially attractive economic activity, apple cultivation contributes about 77% of the total fruit grown in the country. This production is followed by Himachal Pradesh with a contribution of around 19% and Uttarakhand with a contribution of around 2.52%. Apple production contributes 60-65% of the total output of Jammu and Kashmir’s horticulture and around 8% to UT’s GDP. Consequently, it has been declared as the “Agri. Export Zone for Apple and Walnuts”. This cash crop is a source of livelihood both directly and indirectly to a population of 3.3 million people from the region. According to the govt. figures, Jammu and Kashmir produced 19.5 lakh tonnes of apples in 2019-20. However, farmers from all three apple cultivating regions are facing a challenge.

Iranian Apple Imports in India 

Apple growers in India have been protesting for over a month demanding immediate action against illegal imports of Iranian Apples. They claim that Iranian apples are entering India disguised as Afghanistan’s apples under SAFTA (South Asian Trade Agreement) which frees the product from import duties. According to growers from Northern India, 18,000 tons of Iranian apple have already entered the Indian market evading the import duty of Rs. 800,000 on each container. There are reports showing a jump in the import of Iranian apple by 573 percent to reach 30372 metric tonnes with expectations of importing almost 4.5 lakh metric tonnes by the end of March 2022. According to Basheer Ahmad Basheer, chief of the Kashmir Valley Fruit Growers cum Dealers Union, even after the suspension of the free trade agreement, Iranian apples entered the Indian market with a 15% import duty and 35% cess making it difficult to compete with its low price. The fruit is entering India from Iran via Mumbai, Cochin ports or Afghanistan via the Wagah border.

Evading import duties makes the Iranian apple much cheaper as compared to apples produced in India. Apple growers have complained about a 50% drop in the market prices. According to Fayaz Ahmad Malik, head of the fruit grower’s association in Sopore in Baramulla district, per box prices have dropped from Rs. 800-1100 to Rs. 400-600. With this is the growing fear of produce getting rotten in the cold storage and incurring huge losses due to reduced demand for domestically produced apples. At the same time, there are around 1.75 crores of unsold boxes at apple markets with 2.5 crore boxes outside apple stores. If the fruit is not sold in time, it will rot.

Apple growers are also complaining against the selling of apples imported from Iran in the Azadpur Mandi in Delhi. According to them, any newly imported product should be sold in the New mandi and not in the Azadpur mandi. Azadpur Mandi General Secretary Kumar confirmed to Moneycontrol that Iranian apples have been arriving at the mandi, hitting homegrown apples. There are also fears of not meeting phytosanitary standards. Recently, the agricultural ministry suspended the imports of Kiwi from Iran following several interceptions of quarantine and non-quarantine pests, a threat to the biosecurity of the country. Lokinder Bisht, president of the Progressive Growers Association claimed that the presence of insects like codling moth and acuba scale has been noticed in certain shipments of apple from Iran. He demanded a thorough inspection of all consignments received from Iran before releasing them in the Indian market.  

Apple cultivators from Jammu and Kashmir, Uttarakhand, and Himachal Pradesh have joined hands and raised their voices. They have held press conferences, written to the Union Agricultural Minister, Lieutenant General of Jammu, and Kashmir, and to the Honourable Prime Minister but to no avail.

However, there are opposing views as well. In one of the interviews, the Directorate of Horticulture stated that the fears are unfounded. Ajaz Ahmad mentioned that more than 16 lakh metric tonnes of apples have been exported and sold already. Apples stored in cold storage are mainly sold from April onwards.

Why does it need to be resolved immediately?

Apple cultivation directly or indirectly provides livelihood support to more than 3.3 million people in Jammu and Kashmir. Notwithstanding, the valley’s biggest economy of around Rs. 10,000 crore comprising the apple industry has been facing several challenges and issues. The apple cultivation has already incurred huge losses owing to outbreak of coronavirus disease 2019 (COVID-19). And now, with this unexpected challenge of illegal imports of Iranian Apples, the fruit growers are made to suffer needlessly.

Moreover, to uphold the promise of development and to decrease the trust deficit, government should take an immediate call on apple growers’ concerns. The aim of ‘Make in India’ won’t be achieved if domestic producers face asymmetric challenges. It’s well recognized that the quality of apples grown in Jammu and Kashmir is very good and can compete with any apple variety in the world. However, a conducive environment along with fair trade practices is needed to let the apple market grow and flourish.  

Furthermore, the government in March 2021, launched a ‘High-Density Plantation’ scheme that aims at covering a targeted area of 5500 hectares by March 2026 to enhance production and productivity and raise the farmers’ income. But with no demand and low returns on produce, the scheme won’t bear any fruits.

Conclusion and Policy Recommendation

“The C3 Strategy” 

Consult- Apple cultivators have been protesting since January and they raised their concerns last year as well. It is imperative on the part of the government to pay heed to their calls and immediately hold a consultation with apple cultivators to understand their concerns and find a mutually agreed solution.  

Check- Nothing is better than holding fair practices. Government should immediately check the rerouting of apple imports. This is not only important for apple cultivators but also for the International and domestic image of India. The country should stand for fair practices and hold the culprits accountable. Moreover, it is the duty of the government to listen and work for its citizens.  

Construct- The government needs to find a permanent solution to this periodically emerging problem. In Feb 2021, the fruit growers were on street demanding action against the illegal and unrestricted import of Iranian apples. Therefore, the current situation gives the government an opportunity to find a sustainable solution to end the sufferings of the fruit growers.