Himachal Orchardists Fear Price Crash as Cheaper New Zealand Apples will Enter Indian Markets after FTA
India’s newly signed Free Trade Agreement (FTA) with New Zealand has sent shockwaves through apple-growing regions of Himachal Pradesh, Uttarakhand, and Jammu & Kashmir, where over three lakh families depend on the ₹5,500-crore apple economy for survival.
Under the deal, import duty on New Zealand apples has been slashed from 50% to 25% during the crucial April–August window—a period that overlaps directly with India’s apple marketing season. Growers warn this could flood mandis with cheaper imports just as local harvests begin, driving down prices and squeezing already fragile farm incomes.
Farmers point out that apples from lower and mid-hill areas start arriving in June, peak in July–August, and stored fruit is sold until June. With imports now allowed from April, the pressure could last across the entire marketing cycle.
The numbers behind the worry:
- India imports 5 lakh metric tonnes of apples annually.
- New Zealand contributes 30,000–32,000 tonnes despite the earlier 50% duty.
- With reduced tariffs, growers fear this share will rise sharply in coming years.
Orchardists argue that production costs in Indian hill states are far higher than in New Zealand, where yields per hectare are greater, giving imported fruit a clear pricing edge. Grower associations have demanded duties be raised to 100%, warning that even limited imports during harvest could trigger a market crash, especially for small and marginal farmers.
Adding to the anger, farmers recall the Prime Minister’s earlier assurance in Himachal that import duties would be increased, accusing the Centre of a policy U-turn. While the government insists safeguards are built into the agreement, unions say they are inadequate and are calling for an urgent review before concessional imports destabilize India’s apple belt.
