Apple growers have written a letter to Union Minister for Commerce and Industry Piyush Goyal and Union Agriculture Minister Shivraj Singh Chouhan to raise the minimum import price (MIP) of apple imported from Iran to at least Rs 90 per kg from the existing Rs 50 per kg fixed last year. The government had fixed Rs 50 per kg as MIP to help the native apple producers compete with cheap imports from Iran.
A year later, the apple growers have found that the fixing of the MIP at Rs 50 per kg isn’t having the desired impact. “Not only Iranian apple is available for Rs 60 per kg to Rs 70 per kg in the market but also the import from that country is rising. In 2023-24, Iran was the highest exporter of apple to India, contributing 28 per cent of the total import of the fruit,” said Lokinder Bisht, president of the Progressive Growers Association.
He said, “Local apple growers can’t compete with cheap imported apple from Iran, as our per kg cost of production, harvesting, packaging and freight alone amounts to around Rs 55 to Rs 60.” He added that they had highlighted the issues in the letter written to the ministers.
As for the availability of Iranian apple for Rs 60 per kg to Rs 70 per kg in the market, Bisht said it wasn’t possible to sell the imported apple at this price if the import was being done, as per the rules. “Following the introduction of the MIP, apple can’t reach Indian shores at less than Rs 50 per kg. And then, 50 per cent import duty is imposed on the fruit, which makes its cost Rs 75 per kg. Add to it the profit margin of the traders and others in the chain until the fruit reaches consumers. The imported apple can’t be sold for less than Rs 100 per kg,” said Bisht.
He claimed that the availability of Iranian apple at such cheap rates despite the MIP and 50 per cent import duty on it pointed towards a foul play. “Either there’s massive under-invoicing of the fruit coming from these countries to escape import duty or it is being pushed into India through the signatory countries of the South Asian Free Trade Area, where the import duty is not applicable,” he said.
“The growers have written to the Central Government that the apple economy will collapse due to a sharp increase in input cost and unbridled cheap imports from Iran if remedial measures are not taken. We are hopeful that the Central Government will look into the issues and take remedial steps suggested by us,” said Bisht.