The Trump administration's imposition of an additional 27 percent import duty on Indian goods has raised concerns among apple and walnut growers in Kashmir. The growers fear the Indian government might reduce import duties on these fruits to secure favorable terms with the US, which could impact Kashmir's horticulture industry.
Kashmir is a key apple producer and accounts for 92 percent of India's walnut output. Lower import duties could make Washington apples and American walnuts more affordable in the Indian market, affecting local producers. Bashir Ahmad Basheer, president of the Kashmir Valley Fruit Growers Cum Dealers Union (KVFGU), emphasizes the cultural significance, stating, "This isn't just business—it's our heritage, our identity." The potential influx of cheaper imports could challenge small growers who lack alternative income sources.
The KVFGU, representing growers from regions like Srinagar, Sopore, and Baramulla, sent a letter to Prime Minister Narendra Modi. The letter outlines the challenges faced by Kashmir's horticultural sector, including political instability, the 2014 floods, and erratic weather patterns affecting fruit quality and yield. Basheer warns, "This trade policy shift could deliver the knockout blow to an already struggling industry."
The KVFGU urges India to resist US pressure to lower import duties and suggests increasing them to 100 percent on Washington apples to safeguard domestic production. Basheer cautions that without protective measures, "the backbone of Kashmir's economy could snap irreparably."
Market dynamics show concerning trends. At Srinagar's Parimpora fruit market, local apple prices have dropped nearly 15 percent amid rumors of tariff reductions. Ghulam Mohammad Bhat, an apple trader, notes, "Buyers are holding back, anticipating cheaper imports."
The walnut sector faces similar issues. Despite Kashmiri walnuts' superior nutritional profile, they are overshadowed by cheaper imports. Ghulam Muhammad Khan, a grower, highlights, "Our walnut trees, some centuries old, grow naturally with minimal chemical intervention." Yet, Bahadur Khan of the Kashmir Dry Fruit Association points out the challenge: "Our organic, naturally grown walnuts are losing to California's hybrid varieties."
These developments occur as Modi and Trump discuss a potential Bilateral Trade Agreement by 2025. Kashmir's growers are concerned their interests may be compromised in broader geopolitical negotiations.
Source: Greater Kashmir