Mehbooba Mufti Demands 50% Import Duty on Apples to Protect J&K Horticulture Sector

Apple Trade Row Intensifies: Mehbooba Mufti Seeks 50% Import Duty to Shield Kashmir’s Orchard Economy

Former Jammu and Kashmir Chief Minister and PDP president Mehbooba Mufti has written to Prime Minister Narendra Modi, urging the Centre to impose a 50% import duty on apples to safeguard the Valley’s fragile horticulture sector.

Her appeal comes amid concerns over reduced import duties on American apples under the interim Indo-US trade framework — a move she warns could deal a “death blow” to Kashmir’s orchard-based economy.

What Mehbooba Mufti Said

Mehbooba Mufti argued that:

• Zero-duty or reduced-duty imports of American apples threaten local growers.

• US farmers receive substantial subsidies — reportedly between $30,000–40,000 — making their produce significantly cheaper.

• Kashmiri orchardists already operate under structural disadvantages.

She emphasized that apples are not merely an agricultural commodity in Kashmir but the economic backbone of rural society.

“The livelihoods of thousands of families, youth employment, and even education in rural Kashmir depend heavily on the apple industry,” she said, stressing that a protective tariff of at least 50% is essential.

Why the Apple Import Duty Debate Matters in J&K

Apples account for nearly 70% of the region’s fruit economy, forming the core of Jammu & Kashmir’s ₹15,000 crore horticulture sector.

The sector:

• Supports lakhs of growers, traders, transporters, and packaging workers.

• Anchors rural incomes across districts like Shopian, Pulwama, Baramulla, and Anantnag.

• Drives seasonal employment for youth and migrant labor.

Any disruption in apple pricing directly impacts household incomes, loan repayments, and even rural education spending.

Timeline: Apple Import Policy Shifts (2015–2026)

2015–2018: Strong Protection

• Import duty fixed at 50%.

• Minimum Import Price (MIP) policy in place.

• Domestic growers largely protected.

2019–2021: Iranian Imports Disrupt Markets

• Lower-priced Iranian apples entered Indian markets.

• Price crashes hit Kashmiri growers.

• Protests erupted across apple-producing belts.

2022–2024: Adjustments and Safeguards

• MIP raised to ₹50/kg.

• Duties recalibrated.

• Smuggling and under-invoicing remained concerns.

2025: Indo-US Trade Talks Begin

• Anxiety grew among growers over possible tariff concessions.

• Trade discussions intensified at the bilateral level.

2026: Reduced Duty on US Apples

• India allows US apples at ₹80/kg MIP.

• Import duty reduced to 25% (down from 50%).

• Farmers fear subsidized US apples could flood markets.

Subsidies vs Structural Disadvantages

A key concern raised by Mehbooba Mufti is subsidy asymmetry.

According to industry stakeholders:

• US farmers reportedly receive direct and indirect subsidies ranging from $30,000–40,000 annually.

• Advanced cold storage, logistics, and export support reduce their operational costs.

• Larger orchard scales increase efficiency.

In contrast, Kashmiri growers face:

• Climate unpredictability (unseasonal snowfall, hailstorms).

• Weak supply chains.

• High transportation costs to mainland markets.

• Post-harvest losses due to limited cold storage infrastructure.

Even with a 25% duty, growers argue that imported apples can remain competitive — particularly in urban markets.

Government’s Position: ‘Domestic Growers Fully Protected’

Union Commerce Minister Piyush Goyal has maintained that domestic apple growers are “fully protected” under the revised MIP and duty framework.

The government’s stance is based on:

• ₹80/kg Minimum Import Price for US apples.

• 25% customs duty.

• Anti-under-invoicing checks.

Officials argue that MIP safeguards prevent dumping and ensure imported apples cannot be sold below a threshold price.

However, growers contend that declaration practices and market dynamics often weaken the intended protection.

The Ground Reality in Kashmir’s Orchard Belt

In districts like Shopian and Baramulla, orchardists express anxiety over the upcoming harvest season.

Farmers point to:

• Rising input costs (fertilizers, pesticides, packaging).

• Bank loans tied to last season’s earnings.

• Market uncertainty due to imports.

Local trade bodies warn that even minor price dips during peak harvest can trigger significant losses given the volume of apple production.

Economic Ripple Effect

The apple economy in Kashmir is interconnected:

1. Growers

2. Commission agents

3. Transporters

4. Packaging units

5. Cold storage operators

6. Laborers

A price crash at the farm level cascades across this ecosystem.

Industry experts estimate that even a 10–15% price decline could result in hundreds of crores in cumulative losses.

Policy Debate: Protectionism vs Trade Liberalization

The controversy sits at the intersection of trade diplomacy and domestic economic protection.

Pro-Tariff Argument

• 50% duty ensures level playing field.

• Protects rural employment.

• Safeguards regional economy.

Free Trade Argument

• Lower tariffs strengthen Indo-US trade ties.

• Consumers benefit from price competition.

• MIP already offers protection.

The debate reflects a broader tension between global trade commitments and localized economic vulnerabilities.

Political Implications in J&K

For Mehbooba Mufti and the People’s Democratic Party, the issue aligns with a larger narrative of economic safeguarding and regional sensitivity.

Apple growers form a politically influential constituency in south and north Kashmir.

By raising the issue, Mufti positions herself as a defender of rural economic interests.

Other regional parties are also closely watching the Centre’s next move, aware that the apple sector carries both economic and electoral weight.

What Could Happen Next?

Possible scenarios include:

• Review of tariff structure before peak import season.

• Enhanced enforcement of MIP norms.

• Subsidy or compensation packages for growers.

• Political escalation if prices fall during harvest.

Trade policy adjustments often occur quietly, but in politically sensitive sectors like horticulture, they can trigger visible public mobilization.

Conclusion: A Test Case for Trade Policy and Regional Economy

The call by Mehbooba Mufti for a 50% import duty on apples underscores the vulnerability of Kashmir’s horticulture sector in a globalized trade environment.

While the Centre maintains that current safeguards are adequate, growers fear that subsidized imports could destabilize a ₹15,000 crore economy built on apples.

At its core, the debate is not just about tariffs. It is about:

• Rural livelihoods

• Economic resilience

• Trade diplomacy

• Regional equity

As harvest season approaches, the government’s handling of the apple import duty issue may determine not only market outcomes but also political perceptions across Jammu & Kashmir’s orchard belt.