HP MLA moves resolution to protect apple growers from proposed FTAs

Concerns Over FTAs Raised in Assembly

Raising serious concerns over the impact of proposed Free Trade Agreements (FTAs) with countries including the United States, European Union and New Zealand, Congress MLA and AICC spokesperson Kuldeep Singh Rathore on Monday moved a resolution in the Himachal Pradesh Vidhan Sabha recommending that the government formulate a comprehensive policy to protect the state's apple and fruit growers.

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The resolution, introduced on the 14th day of the ongoing Budget Session, highlighted the potential threat posed by reduced import duties under bilateral trade agreements and their likely adverse impact on over 1.5 lakh apple-growing families in the state.

Addressing the House, Rathore said, "This is not merely a matter of trade policy, but of livelihood and survival of lakhs of small and marginal farmers across Himachal Pradesh and other hill states."

'Structural Inequality' with US Growers

He cautioned that the proposed Bilateral Trade Agreement with the United States, being projected as a diplomatic success, could prove "devastating" for domestic apple growers who operate on small landholdings of one to two acres, compared to large-scale orchards of nearly 100 acres in the United States. Calling it a case of "structural inequality," Rathore underlined stark differences in productivity and state support. He noted that while American apple growers benefit from extensive subsidies and financial backing through federal programs, Indian farmers continue to struggle with limited institutional support. "When American growers suffer losses, their government writes cheques worth billions of dollars. When Indian growers suffer, we offer press statements," he remarked.

Economic Impact and Weak Enforcement

The MLA pointed out that apple cultivation contributes over Rs 5,000 crore annually to Himachal Pradesh's economy and warned that any duty reduction from existing levels of around 50 per cent to potentially 20-25 per cent under FTAs would expose farmers to heavily subsidised imports. He also raised concerns about weak enforcement of the Minimum Import Price (MIP) mechanism, stating that cheaper apples from countries like Iran and Turkey have historically entered Indian markets below declared thresholds. "Protection on paper is meaningless without enforcement on the ground. It must be visible in the mandi," Rathore asserted, advocating for a shift to a fixed per-kilogram duty structure to curb under-invoicing and simplify customs assessment.

Highlighting the seasonal vulnerability of Himachal's apple growers, he said imported apples typically arrive during peak harvest months, leading to market gluts and sharp price crashes. This, he added, not only impacts farmers' incomes but also puts pressure on government procurement agencies and cold storage infrastructure.

Threat to Domestic Investments

Rathore further warned that reduced import duties could undermine investments made under schemes like the National Horticulture Mission, particularly in Controlled Atmosphere (CA) storage facilities, by depressing domestic prices and stressing cold chain operators. He also informed the House that apple cultivation has expanded beyond traditional districts into lower regions such as Kangra, Solan, Hamirpur, Bilaspur and Una due to low-chill varieties, while diversification under the HPSHIVA project is driving growth in other fruit crops. "An unbalanced trade agreement will open floodgates for cheap imports, crashing prices and rendering these investments meaningless," he said.

Call for Protective Measures

Calling for urgent policy intervention, Rathore urged the Centre to modernise orchards, provide financial backing comparable to global competitors, strengthen enforcement mechanisms, and protect domestic markets before entering into trade agreements.

Later, speaking to ANI outside the Assembly, Rathore reiterated his concerns, stating that any further reduction in import duties, even to zero, would lead to 'huge losses' for farmers and workers in Himachal Pradesh and other hill states like Jammu and Kashmir, Uttarakhand and the North East. "It is our duty to safeguard the interests of our farmers. Himachal cannot become a dumping ground for imported produce," he said.

Resolution Adopted, CM to Review

The House adopted the resolution and is expected to forward its recommendations to the Centre, seeking protective measures for the state's horticulture sector.

Responding to a question on a resolution regarding the impact of free trade agreements (FTAs) on apple growers, the Chief Minister, Sukhvinder Singh Sukhu, said he would comment after examining the details. The resolution, moved in the Assembly, raises concerns over imports from countries like the United States and New Zealand affecting local horticulturists. (ANI)