The entry of Afghan apples into the Indian market under the Asian Free Trade Area (AFTA) agreement, which exempts them from import duties, has led to a notable decline in the prices of local apples from Himachal Pradesh and Kashmir. The price difference is substantial, with Afghan apples being sold at Rs 50 to Rs 60 per kilogram, in contrast to the Rs 100 to Rs 150 per kilogram price range of Indian apples. This disparity has intensified competition and resulted in decreased prices for Indian apples.
Recent data from the Agricultural and Processed Food Products Export Development Authority (APEDA) indicates a dramatic increase in the import of Afghan apples, from 1,508 tonnes in the financial year 2022-23 to 37,837 tonnes in 2023-24.
Harish Chauhan, President of the Himachal Pradesh Fruit and Vegetable Producers Association, highlighted the timing of these imports, mainly between September and November, with Delhi's Azadpur Mandi being a major recipient. The influx has already begun to affect the pricing of Indian apples negatively. Chauhan emphasized the compounded challenges faced by Indian growers, including adverse weather conditions and the urgent need for governmental intervention to impose a 100 percent import duty on foreign apples.
Fayaz Ahmed Malik, from the Kashmir Fruit Growers and Dealers Association, also voiced concerns over the competitive edge Afghan apples gain due to their lower prices. He pointed out the preference of middlemen for these imports, which depresses the prices of the domestically produced apples, many of which are of medium quality and thus more vulnerable to market pressures.
Source: RuralVoice