From technology to prices, what are the dangers of foreign ‘intrusion’ in the apple business?

Giving opportunity to foreign investment and products in the field of agriculture has always been one of the sensitive topics. At the local level, farmer organizations have always been apprehensive about this. Amidst the growing economic needs and American sanctions, India has also made some such agreements in the field of agriculture, due to which the gardeners and apple farmers of Jammu and Kashmir are losing sleep. About 35 lakh people in Kashmir are directly or indirectly involved in apple cultivation.

A few days ago, a new trade agreement has been signed between India and America. The terms of the agreement are troubling Indian farmers. In the new agreement, the US will get a share of India’s huge market in some agricultural sectors. An agreement has also been reached with the European Union a few days ago. Double agreement is scaring the farmers.

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Why are farmers worried?

Following trade agreements with the European Union and the US, custom duties on apple imports have declined. Jammu and Kashmir Chief Minister Omar Abdullah and opposition leader Mehbooba Mufti have criticized these agreements. There is reason to criticize also. He says that if foreign apples come to India, the market of Indian apples will deteriorate, it will wreak havoc on the farmers. Mehbooba Mufti had expressed this concern on 20 February.

Mehbooba Mufti, former Chief Minister, Jammu and Kashmir:-
I appeal to the Prime Minister to consider the difficulties of the people of Jammu and Kashmir. What will these people do if you take away our livelihood, employment opportunities and children’s education? Where will the countless youth dependent on horticulture go?

What could be the solution?

Mehbooba Mufti is also suggesting a solution for this. He says that the Prime Minister should think again about the agreement. At least 50 percent tariff should be imposed on apple imports.

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What is there to fear?

Like Mehbooba Mufti, agricultural experts believe that just like Iranian apples, when they came to India, the problems of Indian farmers increased, similarly there is another fear. American apples are difficult to match.

What is the matter of concern?

The economy of Jammu and Kashmir is apple dominated. The India-US and India-European Union (EU) trade agreements have spooked gardeners and traders. The government has reduced the import duty on apples coming from America from 50 percent to 25 percent. Tax has also been reduced in the agreement with the European Union. Traders fear that when foreign apples come to India cheaply, the demand for Kashmiri apples will be affected. It may happen that the demand itself decreases.

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Why could this happen?

It is a bit difficult for the gardeners of Kashmir to compete with foreign apples. The population of America and Europe is less and the farms are bigger than India. Farmers have farms on average larger than 50 hectares, whereas in Kashmir the average farmer has less than half a hectare of land. There is also a difference in yield. Maximum 7-8 tonnes of apples are produced per hectare in India. In America and European countries, due to the advent of modern technology and machinery, the yield increases to 40-70 tons.

Technology is also a concern of the Jammu and Kashmir government. Foreign farmers are now even using artificial intelligence for harvesting and sorting, India’s agriculture sector is far from this. There is a situation of high cost and low profit in farming.

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How much does Kashmir earn from apples?

Kashmir’s fruit industry generates revenue of about ₹10,000 crore. About 35 lakh people are directly or indirectly associated with the apple industry. About 70 percent of India’s total apple production comes from Jammu and Kashmir alone. Government figures presented in the Jammu and Kashmir Assembly show that Kashmir had sold about 13.12 lakh metric tonnes of apples in the year 2023-24.

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17.48 lakh metric tonnes of apples were exported in the year 2022-23 and 12.07 lakh metric tonnes of apples were exported in 2021-22. During this period, the total apple production in Jammu and Kashmir was 18.57 lakh metric tonnes, whereas it was 27.21 lakh metric tonnes in 2022-23 and 23.41 lakh metric tonnes in 2021-22. The total revenue of Kashmir’s apple industry is around Rs 12,000 crore. GSDP of Jammu and Kashmir is around Rs 2.86 lakh crore. This sector contributes 6-8 percent to GDP. The cultivable land for apple in Kashmir is about 1.72 lakh hectares.

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​Why will America or Europe benefit?

A large section of businessmen in Kashmir have built cold storages. A huge cost has been spent in getting it built. During the season, apples become extremely cheap. There is profit only in storing and selling them. Farmers fear that if fresh and cheap apples from abroad come to the market in the off-season, then who will buy the old Kashmiri apples kept in cold storage. Farmers will be forced to sell these apples at cheaper prices.