Srinagar, February 11 Fruit growers and dealers in Kashmir are concerned about the adverse effects of the India-US trade deal on the local economy, but there are voices within the community who claim the agreement will stabilize prices and improve the quality of local produce.
Javaid Ahmad Lone, a walnut farmer and dealer from Shopian district in south Kashmir, said that imported goods from the US will force local farmers to improve their stock if they want to remain in business.
"Protectionism is not always beneficial for farmers. They become complacent because they have a captive market. For example, the prices of local almonds and walnuts in Kashmir fluctuate like the stock market. No one is sure what is happening," Lone told PTI.
He said that with a steady supply of walnuts and almonds from the US, the prices of local produce will also stabilize.
"The imported walnuts and almonds have better quality and were already very competitive with tariffs. Local farmers will also have to improve their quality. That is the benefit of competition," he added.
However, the fruit growers and dealers generally feel that the trade deal will be a major blow to the Kashmir economy, which is significantly dependent on horticulture.
Bashir Ahmad Bashir, president of the fruit growers and dealers union, has written to Prime Minister Narendra Modi, highlighting that reduced tariffs on imported apples will put apples from Kashmir and Himachal at a significant disadvantage.
"Marginal farmers have been badly affected by the import of apples from Iran, the US, and New Zealand. Rising input costs, sudden changes in weather, and pest outbreaks have put the entire horticulture sector under financial stress. The reduction in duties will be the final blow," Bashir said.
He said that the need of the hour was to impose a 100 per cent import duty on foreign apples.
"If imported apples are allowed to enter India without any tariffs, the horticulture economy will be in crisis," he added. According to officials of the horticulture department, nearly 20 lakh people earn their livelihood directly or indirectly from horticulture activities in Jammu and Kashmir.
Chief Minister Omar Abdullah raised serious concerns over the India-US interim trade deal on Tuesday, saying it could adversely impact the Union Territory's dry fruit and horticulture economy.
Abdullah said that duty-free imports of tree nuts such as walnuts and almonds could hurt local farmers. "Tree nuts, walnuts, and almonds originate from Jammu and Kashmir. Allowing them duty-free imports raises questions about the sympathy for our farmers," Abdullah said, adding that apples should also be protected.
The opposition PDP claimed that the India-US trade deal would spell doom for the economy of Jammu and Kashmir if no tariffs are imposed on the import of agricultural and horticultural goods from the US.
"They have not considered the impact of the India-US trade deal on the horticulture sector of Jammu and Kashmir. There will be zero tariffs on agricultural products imported from the US. What will happen to the apples and walnuts produced in Jammu and Kashmir?" PDP spokesman Mohammad Iqbal Trumboo said.
