Kashmir Valley’s growers are anxious as import duty is relaxed on American apples
Context
Orchardists in the Kashmir Valley are uneasy following the Union government’s decision to reduce the 20% customs tariff on apples imported from the United States at the recently concluded G-20 conference.
What was the decision taken by the government?
- Apples imported from the United States will no longer be subject to a 20% customs levy, according to the Union government of India. The G-20 summit is when this decision was made public.
How is the decision going to impact the farmers in India?
- Apple producers in the Kashmir Valley, who mainly rely on apple cultivation for their livelihoods, are concerned and anxious about the easing of customs tax.
- Competition and Price Pressure: Because of the lowered customs fees, American apples can now enter the Indian market at lower prices. The local Indian apple farmers may feel pressure from the increased competition to cut their pricing to remain competitive.
- Reduced Profit Margins: Lower prices for apples from India may result in smaller profit margins for domestic apple growers. Farmers may struggle to maintain their earning levels as they compete with apples from cheaper imported sources.
- Market Oversaturation: An imbalance between supply and demand may result from the influx of American apples into the Indian market. A surplus of apples could further lower prices, which would be bad for Indian farmers.
- Standards and Quality: To compete with imported apples, which are frequently seen as being of good quality and consistency, Indian apple producers may feel pressure to raise the quality of their produce. Farmers in the area can incur greater expenses as a result.
What can be done to improve the conditions of the Indian Market?
- Reconsider Import Duties: The government may want to think twice before lowering import taxes on apples. Import taxes that are raised or tariffs placed on apples from other countries can level the playing field and safeguard domestic growers.
- Promote Quality and Certification: Encourage local apple growers to concentrate on enhancing the quality of their produce through promoting certification and quality. Indian apples can rival imported kinds provided certification systems and quality requirements are implemented.
- Research and development: Spend money on research and development for growing apples. This includes creating new apple types that satisfy customer preferences and are resistant to pests and illnesses, as well as having longer shelf life.
- Market Diversification: Exploring and developing new domestic and international markets for Indian apples is part of market diversification. The effects of oversaturation in the domestic market can be mitigated by growing the consumer base.
- Value Addition: Encourage farmers to look at the potential for value addition, such as turning apples into juices, preserves, and dried fruits. By doing so, waste can be decreased and revenue can rise.
