In a move that could adversely impact the apple industry in Himachal Pradesh, Kashmir and Uttarakhand, Prime Minister Narendra Modi has announced the withdrawal of retaliatory tariffs on American apples during his recent visit to the United States. The decision, set to be implemented within the next 90 days, will result in increased imports of American apples into India, potentially reducing the demand for indigenous Himachali apples.
The origin of this trade dispute dates back to 2018 when India retaliated against US tariffs on steel and aluminium by imposing a 20 percent retaliatory tariff on 28 items, including American apples. This increased the import duties on American apples from 50 to 70 percent, aiming to protect the local apple industry.
However, in an astonishing turn of events, the Indian government has chosen to reverse course by eliminating these retaliatory tariffs. This ill-advised decision is expected to unleash a flood of American apples into the Indian market, creating an uneven playing field that severely undermines the demand for homegrown Himachali apples.
The consequences of this government directive are dire and far-reaching. The Washington Apple brand, which already holds a dominant position in the market, is poised to reap the benefits, while indigenous apple growers are left to suffer the devastating financial aftermath. The removal of the tariffs threatens to unravel the progress made by these hardworking farmers in securing fair prices for their produce.
Prior to 2018, the Indian market was flooded with American apples, leading to an imbalance in prices that severely impacted the livelihoods of apple growers in the region. The reinstatement of this one-sided trade dynamic is an alarming regression that disregards the interests of Indian farmers and the fragility of the local apple industry.
The consequences of this government decision cannot be understated. Apple growers in Himachal Pradesh, Kashmir and Uttarakhand now face an uphill battle as they grapple with an influx of cheaper American apples that will undoubtedly undercut their prices and hinder their ability to earn a decent living. The financial losses and hardships that these hardworking farmers are likely to endure are both alarming and unjust.
