India-New Zealand FTA deal sparks alarm among apple growers in hill states

Shimla, Dec 24 (UNI) The Free Trade Agreement (FTA) signed between India and New Zealand has triggered serious concern among apple growers in Himachal Pradesh, Uttarakhand, and Jammu and Kashmir, who fear that cheaper imports would destabilise domestic prices and threaten livelihoods dependent on the fruit economy.
Under the agreement, import duty on New Zealand apples has been reduced from 50 percent to 25 percent under a tariff-rate quota during the April 1 to August 31 period. Growers argue that this window overlaps with the Indian apple marketing season, contrary to claims that domestic apples do not reach markets during these months.
Himachal Pradesh alone has an apple economy valued at around Rs 5,500 crore, supporting more than 3 lakh orchardist families. Growers say the duty cut will encourage a surge in imports at a time when apples from lower and mid-hill areas begin arriving in mandis from June, with peak arrivals in August.
Apples stored in controlled atmosphere (CA) facilities, which are sold between December and June, are also expected to face price pressure once cheaper imported apples arrive from April onwards.
Apple Growers Association president Sohan Thakur said import duty should be raised to 100 percent to protect domestic producers, not reduced. Stone Fruit Association president Deepak Singha maintained that the decision would hit Himachal orchardists the hardest, as their cost of production is significantly higher than that of countries like New Zealand.
Official data show that India already imports over five lakh metric tonnes of apples annually from countries including the US, Iran, Turkey, New Zealand, and Afghanistan. Under the FTA, New Zealand will be allowed to export more than 30,000 metric tonnes of apples in the first year at the concessional duty, with volumes set to rise in subsequent years.
Orchardists have also recalled the pre-election promise made by the Prime Minister in Himachal Pradesh to raise apple import duty, alleging that the Centre has instead taken a U-turn. Growers’ bodies are now demanding that the agreement be reviewed, warning that unchecked imports could trigger a market crash and erode farm incomes in India’s apple-growing regions.

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