Indian apple growers has asked to Union Agriculture and Farmers Welfare Minister Shivraj Singh Chauhan to raise the Minimum Import Price (MIP) for apples to at least Rs 90 per kg. They argue that this MIP increse is crucial as the current MIP of Rs 50 per kg is insufficient to cover domestic growers' production costs and post harvest costs.
The low MIP has led to a surge in the import of inexpensive apples from countries like Iran and Turkey. Additionally, apples from China are entering the Indian market through the United Arab Emirates (UAE), despite the fact that apples are not grown in the UAE. Similarly, a substantial quantity of Iranian apples is entering India via Afghanistan under the South Asian Free Trade Agreement (SAFTA), where import duties are not applicable.
The Progressive Growers Association in a letter dated September 5, 2024, addressed to Minister of Agriculture Mr. Chauhan, highlights the severe impact of these practices on domestic apple producers. The letter notes that while the central government set the MIP at Rs 50 per kg for imported apples in 2023, this policy has led to a significant influx of cheaper apples from Iran, UAE, Afghanistan, and Turkey. These imports are being sold at prices well below those of Indian apples, making it difficult for local growers to cover their costs.
Bisht pointed out that, by regulations, imported apples should not be sold below Rs 50 per kg. With a 50 percent import duty added, the price should rise to Rs 75 per kg, and factoring in traders' profits, the price should be no less than Rs 100 per kg. Despite this, Iranian apples are still being sold at lower prices, suggesting possible irregularities. Bisht speculated that either the prices are being misreported to evade duties or the apples are being imported under the South Asian Free Trade Agreement (SAFTA), which offers duty-free access from Afganistan.
He stressed that if immediate corrective actions are not taken, the entire apple industry could face severe damage due to rising input costs and cheap imports from Iran. Bisht urged the central government to address the issue urgently to prevent further damage to the domestic apple economy.