Growers fear duty cut will hit Himachal premium apple hard

Subhash Rajta

Shimla, July 2

Apple growers fear the slashing of import duty on Washington apple would lead to huge increase in its import and shrinking of market space for the local premium apple. The import stood at around 1.28 lakh metric tonne in 2018-19, just before the government raised the import duty from 50 to 70 per cent in 2019. In 2022-23, the import was reduced to mere 4,486 metric tonne. In monetary terms, as per the Ministry of Commerce and Industry, the import reduced from $145 million to just $5.27 in five years!

“If the increase in duty could reduce the import so much, the reduction would open the floodgates for the US apple. Even if the US matches the pre-hike quantity, how much market space will be left for our premium apple?” asked Harish Chauhan, convener, Sanyukt Kisan Manch.

The growers feel that the segment Washington apple and local premium apple caters to is highly brand conscious. If Washington apple is available for roughly the same rate as the local premium apple or even at a slightly higher price, the consumers would go for Washington apple.

“The Indian consumers have a mindset that the imported product is better. If it’s going to cost the consumers almost same as the premium apple from Kinnaur, Shimla and Kashmir, the consumers are likely to choose the imported apple,” said Lokender Bisht, president, Progressive Growers Association.

Interestingly, apple growers do not fear competition in premium segment from any other country as much as the US. “No other imported apple brand is as big as Washington apple. When it comes to imported apple, Washington apple is the only brand that most consumers know. That’s the reason why we fear the market for our premium apple will shrink with the higher import of the fruit from the US,” said Chauhan.

The growers further feel that the substantial increase in the cost of production over the last few years will make it even more difficult for the local producers to compete with Washington apple. “The cost of production has gone up significantly over the last few years due to rising input costs. With soaring input costs, the arrival of Washington apple in huge quantity is going to hurt us,” said Bisht.

Sharp dip

• Growers say the import stood at around 1.28 lakh metric tonne in 2018-19, before the govt raised the import duty from 50% to 70% in 2019
• In 2022-23, the import was reduced to mere 4,486 metric tonne
• The growers further feel that the substantial increase in the cost of production over the last few years will make it even more difficult for the local producers to compete with Washington apple