How Iranian apples via Afghanistan are ruining Kashmir’s horticulture industry

The advent of Iranian apples has resulted in a drop of over 50 percent in demand for Kashmiri apples, write Suhail Bhat and Sameer Mushtaq for South Asia Monitor

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The impact of Iranian apples on the market of Kashmiri apples in India

Iranian apples have emerged as a new threat to Kashmir's horticulture industry, at a time when extreme weather and Covid-19 have caused major losses to fruit growers. The introduction of these low-cost apples has wreaked havoc on the horticulture industry, causing apple growers to incur greater losses. 

According to Kashmiri growers, Iranian apples are being illegally smuggled into India under the guidr of "Afghan fruit" in order to avoid paying import duties. India and Afghanistan are two of the eight countries that have signed the South Asian Free Trade Agreement (SAFTA) which doesn't include Iran. 

Farmers claim that an "illegal" supply of low-cost Iranian apples has stifled demand for Kashmiri apples, putting a damper on the Valley's estimated three crore (30 million) apple boxes, including 1.5 crore (15 million) in cold stores and 1.5 crore (15 million) in warehouses. Buyers prefer international produce, according to growers, who claim they are earning half the price for their apples compared to a year ago.

Apple’s travails 

The apple industry has suffered major losses since Jammu and Kashmir's special status was taken away in 2019. This was followed by heavy snowfall and the coronavirus lockdown. Apple growers have also suffered significant losses, with scab infections wiping off a large portion of their crop in the last two years. 

The agriculture sector is essential to the economy of Jammu and Kashmir, providing a living for around 3.3 million people with an annual income of 100 billion rupees ($1.3 billion). Furthermore, the region provides almost three-quarters of India's total apple production, which ranges from 1.8 to 2 million tonnes per year. Horticulture also contributes to about 8 percent of the GDP of Jammu and Kashmir. 

Farmers have written to Prime Minister Narendra Modi, appealing to him to help them deal with the "worst situation" that has "snatched their market share". 

The Kashmir Valley Fruit Growers cum Dealers Union said in a letter that the "illegal and unauthorized" import of Iranian apples into India might be "disastrous for small and marginal growers in J&K (UT) and Himachal Pradesh and result in substantial losses to the exchequer".  

"We request your good self to place a restriction on the introduction of Iranian apples into our nation via Afghanistan/Dubai in order to rescue the horticultural industry of the UT of J&K and Himachal Pradesh," the organization pleaded. 

Iranian invasion 

The advent of Iranian apples has resulted in a drop of over 50 percent in demand for Kashmiri apples, according to Bashir Ahmad Basheer, President of the Kashmir Valley Fruit Growers and Dealers Union (KVFGDU). He claimed that Kashmiri apples are now selling for much lower rates than last year. 

"An apple box which would have cost around Rs.1,200 is being sold for half the price,” Basheer bemoaned. 

The Hill Station Forum, which was established to address the issues, labeled Iranian apples as "catastrophic” for small and marginal fruit growers. "The sale of Iranian apples in mandis (wholesale markets) this year has resulted in a 30-40 percent drop in prices for domestic farmers," said Harish Chauhan, President of the Hill States Horticulture Forum. 

He stated that they had approached the government in the hope of finding a solution to the pressing challenges. "We are hopeful that the administration will consider our demands. To protect the interests of domestic growers and affiliates, import taxes on apples should be set at a reasonable level of 100 percent and imports should be limited. Otherwise, due to the undervaluation of duty, the government will lose income,” he said. 

He pointed out that apple imports would have an influence on neighbouring states. He argues that states like Himachal Pradesh and Uttrakhand will also be affected and that growers will have a much harder time during the main season if imports are not regulated.  

Government 'hypocrisy' 

Growers in Kashmir store nearly 1.5 lakh metric tonnes of apples in cold warehouses in the hope of better prices, but an inflow of Iranian apples has harmed their market in India. "The apple sector has had a difficult three years, with growers suffering significant losses. Iranian apples pose an even greater threat because they are consuming our market,” according to Fayaz Ahmad Malik, head of the J&K Fruit Farmers Association in Sopore.  
He added growers are facing the challenge when the Valley is experiencing one of its worst financial crises. 

"This shows the government's hypocrisy," a Shopian dealer and apple producer remarked, adding that the decision also goes against the government's much-touted ‘Atma Nirbhar Baharat’ (Self Reliant India). He said: "On the one side, they want to promote locally grown and manufactured items, but on the other hand, they're engaged in this illegal operation.” 

(The authors are Kashmir-based journalists. They can be contacted  at  sameermushtaq15@gmail.com)

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