Himachal Minister Criticizes Modi Government Over Apple Import Duty Cuts

Himachal Pradesh's Horticulture Minister Jagat Negi has voiced strong opposition to the Modi government's recent decision to cut import duties on New Zealand apples. This move, part of the India-New Zealand Free Trade Agreement, has alarmed local apple growers who fear it will lead to a surge in cheaper imports, negatively affecting their livelihoods. The minister argues that the interests of hill farmers were overlooked during the agreement's negotiation, and he warns that the timing of these imports could coincide with the domestic apple marketing season, further depressing prices. Concerns extend to kiwi and pear growers as well, highlighting the broader implications of the FTA on the region's agricultural economy.

By Narendra Chaudhary Dec 24, 2025, 12:29 IST

Concerns Arise Over Apple Import Duty Reduction

Himachal minister Jagat Negi criticizes Modi administration, labeling it as 'anti-apple orchardist'

Shimla/New Delhi: A significant reduction in the import duty on apples from New Zealand, as part of the India-New Zealand Free Trade Agreement (FTA), has raised concerns among apple farmers in Himachal Pradesh, Uttarakhand, and Jammu & Kashmir. They fear that an influx of cheaper imports will negatively impact prices and exacerbate challenges in the domestic horticulture industry.

Himachal Pradesh's Horticulture Minister, Jagat Singh Negi, has accused the Narendra Modi government of making decisions detrimental to farmers and orchardists, claiming that the interests of hill states were overlooked during the agreement's negotiation.

As per the FTA, the import duty on New Zealand apples has been slashed from 50% to 25% within a specific quota. This change allows varieties like Gala to enter the Indian market at a significantly reduced duty, which growers argue could disadvantage local produce.

Quota-Driven Concerns Intensify

Currently, New Zealand exports approximately 31,392.6 tonnes of apples to India each year. With the duty reduction, a sharp increase in imports is anticipated. The agreement allows for a concessional quota of 32,500 tonnes in the initial five years, which will rise to 45,000 tonnes from the sixth year onward. Imports within this quota will incur only a 25% duty, while those exceeding it will still face the original 50% tariff.

Growers are particularly worried about the timing and volume of these imports. The allowed import period from April 1 to August 31 coincides with the marketing season for Indian apples. Farmer organizations fear that even quota-based imports could lower wholesale prices, especially as domestic producers deal with increasing costs, climate challenges, and logistical issues.

The disparity in competitiveness is significant, with New Zealand's average apple yield estimated at 53.6 tonnes per hectare, compared to India's 9.2 tonnes per hectare, giving New Zealand exporters a considerable cost advantage. Growers predict that the duty reduction could potentially double imports in the coming years.

Concerns Extend to Kiwi and Pear Growers

The FTA has also raised alarms among kiwi growers, who fear a more substantial impact due to the proposed elimination of import duties on kiwifruit, along with reduced duties on pears. Farmer unions contend that producers of apples, kiwis, and pears were not consulted, despite these crops being vital to the economies of hill regions.

“This agreement seems designed to favor imports rather than safeguard the livelihoods of mountain farmers,” stated Harish Chauhan, convener of the Sanyukt Kisan Manch. Sanjay Chauhan, coordinator of the Apple Producers’ Association, expressed deep concern over the tariff reduction, highlighting that orchardists are already facing pressure from rising costs of fertilizers, pesticides, and labor. “The arrival of cheaper fruit could push many growers to the edge,” he warned.

There are also fears that other nations might follow suit; for instance, the US has already requested tariff reductions on apples in a proposed bilateral trade agreement with India.

‘Centre Overlooking Hill States’

Minister Jagat Singh Negi stated that the Centre's actions demonstrate a “systematic neglect” of hill farmers. “The reduction of import duties for New Zealand will lead to significant losses for our orchardists. The FTA's provisions have disregarded the interests of apple, kiwi, and pear growers,” he remarked, adding that the state would raise this issue with the central government.