Himachal Minister Jagat Singh Negi warns that foreign trade pacts and reduced import duties on apples from the US and EU will make the state's Rs 5,000 crore apple horticulture unviable, severely impacting local orchardists.
The Horticulture, Revenue and Tribal Development Minister of Himachal Pradesh, Jagat Singh Negi on Saturday warned that the state's apple-based economy would be severely impacted due to foreign trade agreements signed by the Union government and the drastic reduction in import duty on apple imports from several countries, including the United States and the European Union.
Speaking to ANI in Shimla, Negi said, "Under the foreign trade agreements being signed by the Government of India with different countries, apple horticulture in Himachal Pradesh will no longer remain viable. Import duties have been reduced to near zero, and agreements have been signed with countries worldwide, including the European Union and the US. Apples from these countries will keep entering India throughout the year, and this will have a huge adverse impact on our orchardists in the coming time."
Details of the India-US Trade Agreement
Notably India-US Interim Agreement states that India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of U.S. food and agricultural products, including dried distillers' grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products. Tariffs on almonds, walnuts, pistachios, and apples are reduced. While this increases competition for high-value horticultural farmers in regions such as Kashmir and Himachal Pradesh, many of these items were already being imported in large volumes to meet high domestic demand.
Balancing Measures and Safeguards
The agreement creates a "two-way street" for the fruit industry, balancing new export opportunities with strict domestic protections: New Export Opportunities: Indian fruit growers gained zero-duty access to the $30 trillion US market for several high-value products. These include tropical fruits: mangoes, bananas, guavas, pineapples, papayas, and avocados. To safeguard domestic livelihoods, the Indian government excluded several "sensitive" fruits and vegetables from tariff concessions. Concessions were specifically denied for strawberries, cherries, citrus fruits, and pulses such as green peas and kabuli chana. While India granted some quota-based concessions for US apples, it maintained a Minimum Import Price (MIP) of ₹80 per kg and a 25% import duty. This ensures that US apples priced below ₹100 per kg cannot enter the Indian market, protecting local Himalayan orchards from being undercut by cheaper imports.
Concerns Over Illegal Imports and Economic Impact
Negi said that, even earlier, imported apples were affecting local growers, and the situation would worsen. "Apart from this, apples are also entering India via Afghanistan by misusing trade agreements, even from countries with which India has no direct trade agreements. Such imports routed through Afghanistan have been happening earlier as well, and this will now hit our state even harder," Negi added.
Highlighting the economic impact, the minister said, "Himachal Pradesh's apple economy is worth nearly Rs 5,000 crore. Our neighbouring state, Jammu and Kashmir, produces even more apples than us. Uttarakhand and the northeastern states are also facing challenges, particularly as apple production has begun there. In the coming time, orchardists will face massive losses."
State Government's Plea to the Centre
Negi further alleged that apples were also being imported from China with additional concessions. "The policies of the BJP-led Modi government are not in our favour. These are anti-farmer and anti-orchardist policies," he said.
The minister said the state government and the Chief Minister had repeatedly raised these concerns with the Centre. "The Chief Minister has met Union ministers in Delhi, including the Agriculture Minister. We have clearly told them that these policies are destroying our economy, but nothing has had any impact so far," Negi stated.
Shift in Market Intervention Scheme
On the Market Intervention Scheme (MIS), Negi said the Himachal Pradesh government has decided to shift to direct cash payments to farmers instead of providing inputs. "Under MIS, apples and other fruits purchased from farmers will now be paid for in cash. We will begin with small and marginal farmers and expand gradually as per budget availability," he said.
He added that pending payments had already been addressed. "For clearing old backlogs, the Chief Minister released Rs 154 crore for the year 2023-24, which gave major relief to farmers and helped HPMC clear long-pending dues," Negi said.
Explaining the rationale, he said earlier farmers were given medicines and agricultural inputs instead of cash, but many growers in remote areas could not benefit from this system. "To streamline the process and ensure transparency, farmers will now be paid in cash so that they can purchase inputs of their own choice," he added.
Legislative Meetings and Project Delays
Commenting on the two-day meeting with legislators that concluded on Saturday, Negi said, "A provision of around Rs 210 crore has been made available to MLAs, allowing them to prioritise their schemes. In many cases, projects are pending due to the absence of detailed project reports or a lack of forest clearances, which has delayed implementation."
Special Assembly Session and Opposition's Role
In the special session of the Himachal Pradesh Assembly, Negi said it has been deferred for now. "It will be decided later whether it will be held or not. A cabinet meeting and a meeting on the state's special financial position have been called following the stoppage of the Revenue Deficit Grant," he said.
Calling upon the opposition, Negi added, "If the opposition truly stands with Himachal Pradesh, they should participate and speak in the interest of the state. If they do not attend, it will be clear where they stand."
Tribal Development Initiatives
As the Tribal Development Minister, Negi also spoke about the recent Tribal Advisory Council meeting. "The meeting was chaired by the Chief Minister and attended by the Chief Secretary and senior administrative officers. Detailed discussions were held on various issues concerning tribal communities. It is a major platform to address tribal concerns," he said.
Centre's Reassurance on Trade Deal Benefits
Meanwhile, while addressing a press conference on the India-US Joint Statement, Minister Goyal said, "Agricultural products from Indian farmers will be exported to the United States at zero duty. At the same time, no tariff concessions have been granted to US agricultural products entering the Indian market. The agreement also makes it clear that genetically modified (GM) food will not be allowed into India."
"I can state categorically and without any hesitation that India's farmers, MSMEs, artisans, and craftsmen will not suffer any loss. On the contrary, India will benefit from greater access to the US market," the minister said. (ANI)
(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)