Business

Apple Growers Demand Market Intervention As Prices Fall Ahead Of India-New Zealand FTA

By GS Team
1 Oct 20265 mins read
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Himalayan apple growers face sharp price drops, inadequate storage, and no crop insurance. AIKS demands urgent government intervention, revival of Market Intervention Scheme, and exclusion of apples from trade agreements like India-New Zealand FTA, fearing increased imports. Growers will protest October 19th against plummeting prices and trade deal impact.

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Apple Growers Demand Market Intervention As Prices Fall Ahead Of India-New Zealand FTA
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: Apple growers across the Himalayan region are facing a sharp fall in market prices during the peak harvesting season, with the All India Kisan Sabha (Ajoy Bhavan) urging the Centre and the governments of Jammu and Kashmir, Himachal Pradesh and Uttarakhand to step in immediately.

The farmers' organisation has also raised concerns over the impact of upcoming trade agreements on domestic apple growers and called for an All India Apple Growers' Protest Day on October 19, a day before the India-New Zealand Free Trade Agreement (FTA) is scheduled to come into force.

AIKS said the domestic apple market is already under pressure and warned that increased imports during the storage-selling season could deepen the crisis faced by growers.

Apple Prices Slide In Kashmir

According to AIKS, apple prices at mandis in Kashmir have fallen sharply in recent weeks.

A 15–16 kg carton is currently selling for around Rs. 700–1,000, compared with Rs. 1,100–1,700 a few weeks ago. The organisation said this works out to roughly Rs. 44–67 per kg for growers.

The Valley produces around 2.1 million tonnes of apples annually, accounting for more than 70% of India's apple production, according to the AIKS statement.

However, controlled-atmosphere (CA) storage capacity in the region stands at only around 2.92 lakh tonnes, against an estimated requirement of about 6 lakh tonnes.

AIKS said the shortage particularly affects small growers, who are often forced to sell their produce on the day it is harvested instead of storing it and waiting for better prices.

Farmers Seek Revival Of Market Intervention Scheme

AIKS said the Market Intervention Scheme (MIS), under which NAFED paid Rs. 60, Rs. 44 and Rs. 24 per kg for A, B and C grade apples respectively in Kashmir from 2019, has not been revived.

The organisation also highlighted the situation in Himachal Pradesh, where the Horticulture Department estimates the current crop at around 2 crore boxes, compared with about 3.5 crore boxes last year.

According to AIKS, culled apples in Himachal Pradesh currently fetch a support price of only Rs. 12 per kg, while MIS dues from previous seasons remain unpaid.

The organisation has demanded that the scheme be immediately relaunched with minimum intervention prices of Rs. 90, Rs. 65 and Rs. 50 per kg for A, B and C grade apples respectively.

Crop Insurance Concerns Raised

AIKS has also raised concerns over the absence of effective crop insurance for horticultural crops in Jammu and Kashmir.

Citing an RTI response, the organisation said crop insurance was formally adopted in the Union Territory in 2016 but has never been implemented for horticulture.

It said tenders were scrapped again in June 2026 after insurers sought premiums exceeding 30%.

AIKS also pointed to hailstorms in August that damaged orchards across the Kashmir Valley.

The organisation said a three-week closure of the Srinagar-Jammu highway last year caused apple prices to fall by around 40%, with growers estimating losses at nearly Rs. 2,000 crore. It said no compensation package followed.

Trade Agreements Trigger Import Fears

AIKS has particularly objected to provisions concerning apples in the India-New Zealand FTA, which is scheduled to take effect on October 20, 2026.

Under the agreement, according to the organisation, the duty on New Zealand apples will fall from 50% to 25% for a quota of 32,500 tonnes, eventually rising to 45,000 tonnes annually.

The imports are scheduled between April and August — a period when Indian growers typically sell apples kept in controlled-atmosphere storage.

AIKS has also flagged the India-EU FTA, under which it said the duty on EU apples will be reduced to 20% for a quota of 50,000 tonnes, eventually rising to 1 lakh tonnes.

The organisation further pointed to the February 2026 framework with the United States, under which the Government has agreed to a quota for US apples at 25% duty and is preparing to sign the agreement.

AIKS Cites Surge In US Apple Imports

The farmers' organisation said the existing Rs. 80 per kg minimum import price does not adequately protect domestic growers during the storage season, when imported apples can compete with fruit held in Indian CA facilities.

AIKS cited the experience after duties on US apples were eased in 2023, claiming imports rose from around 50,000 boxes in 2022–23 to about 22 lakh boxes by mid-2024, an increase of more than 40 times.

AIKS president Rajan Kshirsagar said growers were being left without adequate market intervention, insurance or storage support.

“The Government tells apple growers they are fully protected, while it signs away the market for the months when they sell their stored fruit,” Kshirsagar said.

He added that the organisation would oppose any move that it believes threatens the livelihood of Himalayan apple growers.

“If the Market Intervention Scheme is not announced before 20 October, the apple belt will be on the streets,” he said.

AIKS Seeks Higher Support And Storage

AIKS has demanded that all pending MIS dues be cleared with interest and that a statutory minimum support price for apples be introduced based on C2 costs plus 50%.

It has also called for apples to be excluded from the India-New Zealand, India-EU and India-US trade agreements and demanded that the import duty on apples be raised to 100%.

Other demands include:

  • Creation of public and cooperative CA storage facilities.
  • A fully government-funded crop insurance scheme.
  • Immediate relief for orchards damaged by hailstorms.
  • Assured movement of trucks carrying apples.
  • Compensation for losses caused by highway closures.

Apple Growers' Protest On October 19

AIKS has called on its units to observe October 19 as All India Apple Growers' Protest Day.

The organisation has asked growers to hold demonstrations at district and block headquarters and submit memoranda addressed to the Prime Minister through Deputy Commissioners.

AIKS has also invited apple farmers' and growers' organisations to join a united campaign.

It said that if its demands are not addressed, it would launch a sustained agitation across the apple-growing belt and take the campaign to the national capital.