Shimla (Himachal Pradesh) [India], April 29 : The recently signed Free Trade Agreement (FTA) between India and New Zealand has sparked concern among apple growers in the Himalayan states of Himachal Pradesh, Jammu and Kashmir and Uttarakhand, with apprehensions that the deal could adversely impact domestic producers and the fragile hill economy.
Under the agreement, signed on April 27, 2026, India has agreed to reduce the basic customs duty on apple imports from New Zealand from 50 per cent to 25 per cent within a Tariff Rate Quota (TRQ) framework.
The quota has been fixed at 32,500 metric tonnes in the first year and is set to increase gradually to 45,000 metric tonnes by the sixth year. Imports will be permitted during the April to August period, with a minimum import price fixed at USD 1.25 per kilogram.
Reacting to the development, Congress MLA from Theog and AICC spokesperson Kuldeep Singh Rathore, in a statement issued in Shimla on Tuesday, expressed serious concern over the potential impact of the agreement on apple growers.
Rathore said, "The decision to reduce import duty on apples under the FTA will directly affect lakhs of horticulturists in Himachal Pradesh and other hill states, who are already struggling with rising input costs and climate-related challenges." He added, "Allowing imports during the April-August period, which overlaps with the domestic apple marketing season, will put immense pressure on prices and hurt farmers' incomes."
Highlighting the disparity in productivity, he said, "New Zealand is one of the most efficient apple-producing countries, with yields of 50 to 70 tonnes per hectare, while Himachal Pradesh averages only 7 to 8 tonnes per hectare. Competing with such high-efficiency producers without adequate safeguards will be extremely difficult for our farmers."
India's apple economy is largely concentrated in the Himalayan belt, where it supports a vast rural population. Jammu and Kashmir accounts for nearly 76-77 per cent of the country's apple production, followed by Himachal Pradesh with about 21-22 per cent. In Himachal alone, apple cultivation is spread over more than 1.15 lakh hectares and sustains nearly 2.5 lakh families, contributing around 80 per cent of the state's horticulture income.
Rathore pointed out that growers in the region continue to face multiple structural challenges, including fragmented landholdings, lack of modern storage and grading facilities, and fluctuating production due to changing weather patterns. He noted that apple output in Himachal Pradesh has remained volatile, ranging from 3-5 lakh metric tonnes in weaker years to 7-8 lakh metric tonnes in good seasons.
"Even the initial import quota of 32,500 metric tonnes may seem modest, but it is sufficient to influence market prices during the peak marketing window, especially when apples from controlled atmosphere storage and early-season produce enter the market," he said.
Calling for immediate intervention, Rathore urged the Centre to put in place strong safeguards to protect domestic growers. "There must be strict monitoring of import quotas, effective enforcement of the minimum import price and appropriate seasonal regulation to ensure that the interests of Indian farmers are not compromised," he said.
He further added, "If timely measures are not taken, falling prices could discourage investment in orchards and destabilise the rural economy of hill states, where apple cultivation is a primary source of livelihood."
The apple sector remains a crucial pillar of the economy in mountainous regions, providing employment and sustaining thousands of families. Growers and stakeholders have reiterated the need for balanced trade policies that safeguard domestic agriculture while engaging in international trade agreements.
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