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MIP for imported Apples

4 mins read

Mir Mudasir

After facing huge losses for two consecutive years, the apple growers in Kashmir got a big relief which is going to have a very fruitful effect on the market for the apples. The central government after a lot of requests from the fruit growers in Kashmir and in Himachal Pradesh has now prohibited the import of apples where the CIF (Cost, Insurance, and Freight) import price is less than or equal to Rs 50 per kilogram.

For the apple growers it could become a turning point and after many years would have a positive impact for the growers and their finances.

In a recent decision, the central government has changed its import policy for apples and created a Minimum Import Price (MIP), which is an import price ceiling, to safeguard the interests of the country’s apple growers. This is a significant step that is sure to cheer up Kashmir’s apple farmers. This decision came after Iranian apple imports during the last two years have hit the rates of Kashmiri apples.

 The central government has changed its import policy for apples and created a Minimum Import Price (MIP), which is an import price ceiling, to safeguard the interests of the country’s apple growers. This is a significant step that is sure to cheer up Kashmir’s apple farmers. This decision came after Iranian apple imports during the last two years have hit the rates of Kashmiri apples.

“For the past few years, the growers have been suffering due to the arrival of Iranian apples via Afghanistan which ruined our markets,” said Adil Malik who owns a setup at Asia’s second largest fruit Mandi Sopore.

“The growers have met various people and sent representations. Finally a good decision has been made. This is going to have a good impact on our fruit. Hope from this season we will be able to fetch good rates.”

Bashir Ahmad Bashir, president of All Valley Fruit Association termed it as a welcome step. “This will not only benefit us but also the growers of Himachal Pradesh who also suffered losses due to duty free apples.”

Almost every fruit grower seems to be happy with this decision as the good rates for apple bring fortunes in the rural Kashmir as the rural economy of J&K especially Kashmir is based on agriculture and horticulture sectors and of late government of India has started doing innovations to help people to uplift their economic conditions via these two sectors and this new decision will have far reaching impact.

The tax-free import of Iranian apples through Afghanistan and the Wagah border had adversely affected the Kashmiri apple business in India, say local growers.

Growers say the quantum of Iranian apples entering India was increasing by the day, which could have eaten into the Kashmiri apple’s market share in the coming years 

“Unless the imported fruit is taxed the situation for our fruit industry was at stake and now dealers in Azadpur fruit mandi preferred the apples from Iran. Now this trend will stop,” said Akash Ahmad, a dealer and commission agent at Delhi.

The Union territory’s horticulture department had also flagged the issue with the Centre. Each year, around 1.5 to 2 lakh metric tons of apples are stored in cold stores across Kashmir in an effort to heap rich dividends, especially during the off season —March, April and May when their market price soars. With the arrival of Iranian apples the growers now had no option but to store their apples in CA stores, however it was proving a costly affair.

“Tax-free apples coming via Afghanistan have had a negative impact on the sale of the Kashmiri variety. The government should shut down this free trade as it will ruin the prospects of Kashmiri growers. We had been expecting to sell our apples in cold storages for ₹130 to ₹150 per kg but the duty-free apples from Iran have brought down the prices,” a grower delegation had told the officials.

Last year the apples of Kashmir even couldn’t fetch 400 to 500 per box and many growers suffered huge losses.

Horticulture is the backbone of the J&K economy as it contributes around 8% towards the gross domestic product (GDP) of the Union Territory besides generating employment avenues for the younger generation.

As per official data, seven lakh farming families comprising 35 lakh people are directly or indirectly associated with the sector. At present, Kashmir produces around 23 to 24 lakh metric tons of fruit. Both dry and fresh fruits are grown over more than 3.37 lakh hectares of land and with every passing year more land is brought under fruit cultivation. Alone apples are grown over 1.68 lakh hectares of land followed by pear which is grown on 14161 hectares of land in the Valley.

Over the last three years, around 607 hectares have been brought under fruit cultivation in Kashmir. Both normal and high density saplings were planted in the newly established orchards. 

Former Director General horticulture Ajaz Ahmad Bhat said, “High density plants were cultivated on around 316 hectares. And there is a plan to bring at least 1,000 hectares under high density cultivation every year.”

“We are chalking out a plan to produce around four crore rootstocks (part of a plant from which new above-ground growth can be produced), enough to cover 10,000 hectares. Last year 2.20 lakh clonal rootstocks were imported from the Netherlands and planted at the horticulture department’s farm in Zawoora,” he said.

Did you know?

1. Around 25 varieties of fresh and dry fruits are cultivated by growers in J&K.

2. The UT produces 17,64,264 metric tonnes of fresh and 2,70,104 metric tonnes of dry fruit.  

3. Around 3.31 lakh hectare of land is under the fruit cultivation in Jammu and Kashmir, of which around 1.67 lakh hectares is under apple cultivation.

4. The UT produces around 15,26,274 metric tonnes of apples per year.

5.  Around seven lakh farming families (approximately 35 lakh people) are directly or indirectly associated with the horticulture sector.

6. Apples contribute to around 8% of Jammu and Kashmir’s gross domestic product.

7. Fruits identified for high-density plantation are apple, walnut, almond, cherry, litchi, and olive.

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