Apple growers in India have approached Union Commerce and Industry Minister Piyush Goyal and Union Agriculture Minister Shivraj Singh Chouhan with a plea to elevate the minimum import price (MIP) for apples from Iran. The current MIP stands at Rs 50 per kg, a figure established last year to bolster domestic apple production against inexpensive imports from Iran. The growers are advocating for an increase to at least Rs 90 per kg.
Despite the initial setting of the MIP at Rs 50 per kg, the measure has not yielded the anticipated benefits. According to Lokinder Bisht, president of the Progressive Growers Association, "Not only Iranian apple is available for Rs 60 per kg to Rs 70 per kg in the market but also the import from that country is rising. In 2023-24, Iran was the highest exporter of apple to India, contributing 28 per cent of the total import of the fruit." The cost dynamics for local apple production, encompassing production, harvesting, packaging, and freight, render competition with the more affordably priced Iranian apples untenable.
Bisht elaborated on the pricing mechanics post-MIP implementation, indicating that the landed cost of Iranian apples, inclusive of a 50 per cent import duty, should logically position retail prices above Rs 100 per kg. The presence of these apples in the market at significantly lower prices hints at potential under-invoicing or circumvention of duty through the South Asian Free Trade Area agreements, as per Bisht's observations.
The appeal to the central government underscores the precarious position of the domestic apple economy, threatened by escalating production costs and the influx of cheaper Iranian imports. The growers remain hopeful for governmental intervention to address their concerns.
Source: HimTimes