Himachal Pradesh Govt owes Rs 100 crore to apple growers

Subhash Rajta

Shimla, December 17

The Himachal Pradesh Government is struggling to pay around Rs 100 crore it owes to apple growers for the fruit procured under the Market Intervention Scheme (MIS).

Horticulture Minister Jagat Singh Negi says the Centre’s decision to “pull out” from the scheme is making it tough for HP to meet its MIS liabilities. “We owe over Rs 80 crore to apple growers under the MIS. The Centre’s decision not to make any allocation for the scheme in the Union Budget this year is affecting us,” said Negi. The Centre reduced the MIS budget from Rs 1,500 crore in 2022-23 to just Rs 1 lakh for 2023-24. The Centre and the state share the losses incurred under the scheme on 50:50 basis.

Under the MIS, the state government procures C-grade apple at a nominal price through HP Horticultural Produce Marketing and Processing Corporation Limited and Himfed. While a part of the procured apple is used for making juice concentrate, fresh juices and jams etc, the rest is auctioned. This year, both the agencies procured around 53,000 metric tonnes at Rs 12 per kg. The growers, meanwhile, say the government owes them over Rs 100 crore. “The government has procured apple worth around Rs 60 crore this year and payment of around Rs 45 crore is pending since the last year. If the payment is not released, the growers will have no option but to start an agitation,” said Sanjay Chauhan, the co-convener of SanyuktKisanManch. “According to the APMC Act, the arhtiyas are bound to make the payment on the day when the produce is sold. This should be applicable to the government as well,” said Chauhan.

The delay affects small and marginal growers the most. Unsure of the MIS payment, they take their sub-standard produce to the market, which affects the overall rate in the market. “This defeats the whole purpose of having the MIS scheme for C-grade apple,” said Chauhan.