Kashmir’s walnut industry is dying unattended

Kashmir’s walnut industry is dying unattendedHorticulture is an important sector of J&K economy. The state is famous for its horticultural produce. The best known horticultural items from the state are apple, walnut, apricot, pear, peach, cherry, almond etc. Here my focus is particularity the walnut industry which is presently facing an existential threat. This sector is source of livelihood for thousands of families. But the growers and traders associated with this sector are worried due to sharp slump in prices. Traders are of the opinion that the present decrease in prices is due to the import of walnuts from United States and other countries. As a result, the prices and demand of Kashmiri walnuts reduced by half. Last year, the best quality walnut kernel was sold at Rs 1,000-1,200 per kg but this year the prices are hovering around Rs 400. Therefore, neither the growers are willing to sell their produce nor the traders are able to purchase and sell it in the market.

The table shows walnut production in some major districts of J&K during 2010-11. As per some estimates, the total walnut production in the valley in 2013-14 stood at 2.20 lakh metric tonnes produced over an area of 95,600 hectare area.

Major walnut producing districts (2010-11)

(000’ metric tonnes)

01 Anantnag 45.43
02 Kulgam 20.69
03 Pulwama 6.70
04 Shopian 7.94
05 Ganderbal 6.92
06 Budgam 9.22
07 Baramulla 7.06
08 Kupwara 24.38
09 Poonch 8.05

Source: Directorate of Horticulture, J&K

What went wrong?

It is for the first time in decades that the walnut industry in Kashmir is facing serious crisis. It is a perfect case of mis-governance. Mr. Sanjay Kumar, a dry fruit retailer from Narwal Mandi Jammu puts the blame solely on the Ministry of Horticulture, Government of J&K. He argues that in 2015 the Government of India, before importing dry and fresh fruits from other countries, had sought clarification from the State Ministry of Horticulture. To his utter surprise, the State Ministry of Horticulture has shown no reservations on the import of dry and fresh fruits from other countries. It speaks volumes about the wisdom of our ministers and the associated bureaucracy. Thereafter, the traders have met the Minister of Horticulture Abdul Rehman Veeri, but to no avail. Mr. Kumar holds that the big guns (exporters) in the business are happy with this new trend of importing dry and fresh fruits, free of duty, from other courtiers as they are making huge profits. It has essentially reduced their dependence on Kashmir based production. It is only the small traders and growers of our state who are suffering the most. The rule of laissez-faire capitalism is, ‘the big fish eat the little ones’. “We earnestly request the Government of India to revive the old import regime vis-à-vis dry fruits. We are suffering huge losses and thus future looks bleak”, said Mushtaq Ahmad Padder, a trader from Veeri, Bijbehara. Another trader from the same village Bashir Ahmad Padder said, “I am in this business for the last 40 years. Market is giving clear signals. This business is almost over now”.

Way out

The very first step for injecting new life into the walnut industry is to bring the issue in the notice of Union Ministry of Finance for immediate redressal. The Honorable governor of the state must prevail upon the concerned ministry to save the livelihood of thousands of families. Otherwise, walnut growers and traders will be forced to come on the streets. There is no doubt that our successive state governments have ignored this sector. There is no proper infrastructure in place to boost the industry. The only walnut mandi in our state is in Jammu while the production is largely from Kashmir valley. There is an immediate need to establish a walnut mandi in the valley itself. Also, the establishment of a Horticulture University is most desirable. There is enough scope to do research in hybrid seeds and thus raise the horticulture production. As per official figures around 60 per cent of the total walnut of Kashmir is supplied to various parts of India. While there is no tax on walnut kernels in J&K, but once it is supplied outside the state, 12 per cent tax is levied on it. This must be done away with. Finally, a proper insurance scheme must be put in place to insulate the growers and traders from suffering high income shocks on account of market vulnerabilities.

Sajad Padder did his PhD in Political Science from the University of Kashmir, Srinagar

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