On May 8, the Indian government issued a notification and banned the import of apples costing less than Rs 50 per kg. This cost includes the cost of the fruit, insurance and freight import cost. This decision will keep cheaper imported apples out of the Indian market.

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This decision has brought cheers to the Indian apple growing community. Apple farmers say this ban will make it possible for them to compete with cheaper imported apples and they will be able to fetch better prices for their produce.

India produces 2.45 million tons of apples every year. Kashmir, Himachal and Uttarakhand are the major apple producing states with over nine lakh apple growers. These apple growers play a key role in the economy of their respective states.

But the last few years have been difficult for these farmers. Increased production cost and competition from big corporations meant the Indian apple growers were facing losses.

Last year during Himachal assembly elections, increased production cost was an important election issue for the apple growing community in the state. This ended up being one of the key reasons, along with restoration of New Pension Scheme (NPS), inflation and unemployment will cost BJP the state.

Apple farmers say that this ban will provide a huge relief to farmers who were unable to make up for their production cost by selling their produce. India imports apples from the US, New Zealand, UK, China, Turkey and Iran.

Also Read:Indian farmers welcome government's move to ban import of cheap apples

Iranian apples have cost maximum damage to Indian farmers. Iranian apples cost less than Rs 50 per kg (including important duty). With a production cost of Rs 30 per kg and high transportation costs, Indian apples cost at least Rs 90 per kg. So, Indian farmers weren't in a position to compete with the Iranian apples. Apple growers also claim that there is no exception given to South Asian Free Trade Area (SAFTA) countries and this will also help the farmers.

Harish Chauhan, President, Himachal Fruits and Vegetables growers' association told CNBC-TV18 that, "There is no exception given to SAFTA countries in the notification. So, Iran won't be able to import its apples illegally via Afghanistan. Which means there is no loop hole in the decision which other countries can exploit. The apple farmers of the state are very happy with the ban."

India imported 4.48 lakh tonnes of apples in 2021-22. Iran's market share of this import was 23 percent and farmers say due to lack of proper vigilance, these imported apples were illegally capturing the Indian market. The apple growing community claims this notification will put a full stop to this.

Majid Wafai, J&K cold storages association told CNBC-TV18 that, "Iranian apples had made inroads in mandis and APMC markets dedicated to Indian farmers, causing us further losses. This was an illegal practice and thanks to this ban, this will also change now as Iranian apples won't make it to the Indian market."

Various Indian Horticulture organisations who were seeking a ban on cheap imported apples for years now are claiming that this notification will bring huge relief to the Indian apple growers.

After this ban, these organisations are planning to seek an increase in import duty of the apples. They claim that this will discourage massive imports and will force the government to enhance and increase in house production to meet our domestic demand.

First Published:May 16, 2023 6:53 PM IST