In a move which is likely to bring relief to Kashmir’s apple farmers, the union government has rolled out a new regime for the import of apples from all countries, except Bhutan.
The development is likely to bring some cheer for Kashmir’s apple farmers who often become victims of volatility in markets and cheap imported apples, which forces them to sell their produce at throwaway prices.
In a notification, the union government has amended its import policy for apples by introducing a Minimum Import Price (MIP) of Rs 50 per kilogram of apples, a move which will protect the interests of J&K’s apple producers.
A notification issued by the Union Ministry of Commerce and Industry on 8 May 2023, reads:
“In exercise of powers conferred by Section 3 read with Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, read with paragraph 1.02 and 2.01 of the Foreign Trade Policy 2023, as amended from time to time, the Central Government hereby amends the import policy condition under ITC(HS) 08081000 of Chapter-08 of ITC (HS), 2022, Schedule-I (Import Policy) as under:”
According to the new policy, import of apples under ITC (HS) 08081000 is now ‘Prohibited’ wherever the CIF Import Price is less than equal to Rs. 50/- per kilogram. However, these Minimum Import Price (MIP) conditions shall not be applicable for imports from Bhutan.
Apple growers of Kashmir and Himachal Pradesh have been incurring huge losses due to the import of cheap apples from neighboring countries at much lower prices.
J&K’s fruit growers, traders and farmers’ associations had been seeking an import cap to protect the country’s apple farmers.
Minimum import price is a mechanism used by governments to protect domestic farmers from cheap imports that can hurt local agricultural industries.
When the government sets a minimum import price, it means that imported agricultural products cannot be sold below a certain price point, which is designed to be higher than the cost of production for local farmers.
MIP helps farmers in several ways.
Price stability: MIP ensures that imported goods are not sold at a price lower than the minimum import price set by the government. This helps to stabilize prices of local agricultural products by preventing the market from being flooded with cheap imports that could lead to lower prices for local farmers.
Reduced competition: Setting a MIP reduces competition from cheaper imported products that could potentially displace locally produced goods. This can protect local farmers from being driven out of business by cheaper imports.
Encourages investment: When farmers have confidence that their products will be sold at a reasonable price, they are more likely to invest in their farms and increase production. This can lead to increased yields, better quality products and more income for farmers.
Job security: MIP can also help to protect jobs in the agricultural sector. Without protection from cheaper imports, local farmers may struggle to compete and this could lead to job losses in the sector.