Despite off-season safeguards, India–New Zealand trade deal may hit high- density, CA storage produces

Srinagar: India’s decision to grant preferential market access to New Zealand apples under Free Trade Agreement (FTA) arrangement may still hurt domestic apple growers, particularly in Kashmir, despite official assurances that the concession is restricted to the counter-seasonal window.

Under the agreement, India will allow imports of up to 32,500 tonnes of New Zealand apples in the first year at a reduced customs duty of 25%, rising gradually to 45,000 tonnes by the sixth year. The concession applies only between April and August, a period the government has described as the off-season for Indian apples, with a minimum import price (MIP) of $1.25 per kg to prevent cheap imports.

However, apple growers, which accounts for nearly 75% of India’s apple production, argue that the timing could still directly affect domestic supply.

Large volumes of Kashmiri apples stored in Controlled Atmosphere (CA) facilities are typically released into markets from April onwards, just as imported apples would begin arriving.

"April to June is no longer a true off-season,' said Mohammad Ashraf Wani, president of Fruit Mandi Shopian. Shopian is one of the major apple producing areas in Kashmir. "CA storage has extended the market life of domestic apples, and imported apples during this period will inevitably compete with stored produce', he said.

Currently at least 2.5 to 3 lakh metric tonnes of apples are lying in various CA storage across the Valley.

Industry representatives also point to the rise of high-density apple plantations in Kashmir, which mature earlier than traditional orchards. Harvesting of these varieties has increasingly begun in July, overlapping with the latter part of the import window.

"The assumption that Kashmiri apples enter markets only after August is false,' said Wani.

"High-density apples start coming in from July, and price pressure at that stage can hurt farmers who are already dealing with rising input costs', he added.

With more and more farmers taking to high-density apple farming, the production has surged to around 1 lakh metric tonnes annually.

India has sought to balance trade liberalisation with farm protection through safeguards such as import quotas, higher duties beyond the quota and any shipments exceeding the annual quota will face a 50% duty, aimed at discouraging large inflows.

Government officials maintain that the measures are sufficient to prevent market disruption and say the agreement offers Indian consumers year-round supply without undermining domestic producers.

Trade analysts, however, caution that even limited imports can influence wholesale prices in a sensitive market. "Apples are economically an important crop in Kashmir, providing livelihood to millions' said prominent trader.