apple growers

‘Kashmiris Made to Suffer for Applause from Abroad’: Fears Over Govt’s Apple Import Tariff Slash

According to Kashmir-based traders and growers, the entry of Washington apples with a tax waiver into the market at a time when the apple harvest season is set to pick up will lead to pricing fluctuations which will hit the local industry badly.

Srinagar: At a time when the apple harvest season is gaining momentum in Kashmir, the Union government’s decision to waive off 20% tariff on imported apples is turning into a fresh headache for the Lieutenant Governor Manoj Sinha’s administration.

The opposition parties in Kashmir have urged the Bhartiya Janta Party-led Union government to roll back the decision while local stakeholders are anguished that the waiver will negatively impact Kashmir’s apple industry, which employs more than 30 lakh people directly and indirectly.

The revision of tariff, which has chopped off extra 20% from the 70% tariff imposed since 2019 by New Delhi on the premium Washington apples, was announced during Prime Minister Narendra Modi’s state visit to the United States in June this year.

The decision came into effect on September 5 when the Union finance ministry reportedly released a notification ahead of the meeting between Modi and his US counterpart Joe Biden on the sidelines of the G-20 Summit in the national capital.

The notification announced the tax waiver on several US products such as walnuts, lentils, chickpeas and apples.

Also read: The G20 Has Summarily Failed to Address Agrarian Distress in its Member Countries

‘Kashmiris put in agony only to receive applause from foreign countries’

“High inflation has already led to a shoot up of the cost of apple production while the yield has also fallen over the years. The tax waiver [on imported US apples] will hit not just the farmers of Kashmir but also in Himachal Pradesh and Uttarakhand. The government should reconsider the decision,” said Bashir Ahmad Bashir, president of the All Valley Fruit Growers and Dealers Association (AVFGDA), the leading association of apple growers and traders in Kashmir.

Speaking with reporters on the sidelines of a function here, former J&K chief minister Omar Abdullah called for a rollback of the waiver while alleging that the decision “reflects the disconnect” between the people of J&K and the administration, which is run directly by the Union government.

“We don’t want imported apples, walnuts or almonds here,” Abdullah said, “It is hard to believe that the government is increasing hardships on the people of Kashmir in order to please the US and other countries. Kashmiris are put in agony only to receive applause from the foreign countries.”

Role of the import tariff

Kashmir is the country’s apple basket, producing around 21 lakh metric tonnes of fruit last year (or more than 70% of apples produced in India) which generates a revenue of between Rs 10,000-Rs 14,000 crore in J&K. The horticulture sector contributes around eight to 10% of J&K’s Gross Domestic Product.

In 2019, India and the US were caught in a trade war when, under President Donald Trump, Washington raised tariffs by 10-25% on specific steel and aluminium items, citing national security concerns. India followed suit by increasing tariffs on several US products, including Washington apples.

The imposition of extra tariff drastically reduced India’s apple imports from the United States. From US $145.2 million in 2018-19 when the country imported US $305.71 million worth of apples worldwide, according to official data, the apple imports dropped to only US $5.27 million in 2022-23 when the total apple imports were at US $295.94 million.

In the past four years, Turkey has emerged as the leading apple supplier for India, making up for more than 84% of total apple imports followed by Italy, Chile and Iran.

With the harvest season picking up in Kashmir and elsewhere in the country, the arrival of the premium quality Washington apples in the market, which are wax-polished to increase their shelf life, has dampened the spirits of local growers and traders, who were hoping to capitalise on low domestic production this year.

This year, Jammu and Kashmir and Himachal Pradesh suffered between 40-50% loss of apple produce due to unseasonal rains, hailstorms and flood which led to spread of diseases such as scab and powdery mildew in apple trees and immature fruit droppings.

Representative image. Photo: Pexels/rohitsinghprashar

‘Waiver will narrow down price difference’

According to traders, Kashmir’s Red Delicious variety, which makes 70-80% of total apples produced in Kashmir, sold for around Rs 75 per kilogram in the wholesale market last year. One box of Kashmiri Red Delicious apples, which contains around 20 kilograms of fruit, fetches Rs 1,200-1,500 in New Delhi’s Azadpur Mandi, one of the country’s largest fruit markets.

In comparison, a kilo of the imported US apples sold for around Rs 120 in the wholesale market of Azadpur Mandi, according to a trader. A 32-kg box sold for Rs 3,000-4,000 last year while a 25-kg box fetched Rs 2,500-3,000.

The revision of tariff will reduce the cost of the bright-red and glossy Washington apples in wholesale markets to Rs 100 a kilo, making them a direct and more powerful competitor for local apple varieties which are dull in colour and also lack lustre.

“The waiver will narrow down the price difference between imported and local apples. The quality of imported apples is exceptionally high and our apples don’t stand a chance in front of them,” said Ghulam Jeelani Dar, an apple trader from central Kashmir.

Mohammad Ashraf Wani, a grower from Shopian, one of the largest apple producing districts in Kashmir, said that the farmers in the US are more advanced in terms of the use of farming technologies and the subsidies provided by their governments.

“The waiver on tariff will hit both growers and traders in India equally as the domestic varieties of apples may not be able to compete with the Washington apple,” Wani, former president of the Shopian Fruit Mandi, said.

However, some traders believe that the local varieties of apples will be equally in high demand due to low production and the central government’s waiver will not lower the prices of local apples.

“The demand for apples is high this year due to low production. Thus the tariff waiver on imported apples will not have any significant impact on local producers and traders this year,” Ravinder Chauhan, president of Apple Growers Association of India, told The Wire.

Duty policy and politics

India imposes 35% duty and 15% cess on apple imports, taking the total tariff to 50% of cost, but the tariff was set at 70% in case of the US apples in 2019.

The deal to waive off 20% tariff came after the Union government announced a blanket ban on free import of apples if the cost, insurance and freight (CIF) price was less than or equal to Rs 50 per kg.

The policy was rolled out after underpriced apples from Iran made their way into Indian markets through Afghanistan, which is the second country alongside Nepal to enjoy duty-free trade with India, putting the local growers in Kashmir, Himachal Pradesh and Uttarakhand on the back-foot.

There were reports of many growers struggling to recover the production costs due to significantly low prices of imported apples.

“Importing apples is not a wise policy decision,” Wani, the trade leader, said, “Being home to the world’s one-fourth population, our country is sufficient to consume the local production. While the government may not be able to increase tax duty to avoid any trade issues with the US, it can increase the cess on imported apples.”

He added: “If Japan can impose 100% cess on rice imports to protect local farmers, what stops the Union government from taking a similar decision? The increase in cess will provide a level playing field for both local and imported apples.”

Wani believes that the government was forced to invoke CIF price tag on imported apples because of the loss of tax revenue, “It was a calculated decision to prevent tax pilferage rather than a decision for the welfare of farmers. If the government is indeed concerned about Kashmir’s apple farmers, it should announce a Minimum Support Price and crop insurance scheme for them,” said Wani, the grower from Shopian. CIF or ‘cost, insurance, and freight’ are charges paid by a seller for exports.

Bashir, the AVFGDA president, said that the Union government should impose 100% import duty on imported apples if it wants to protect the local growers, “Otherwise apple farming will become an unsustainable practice in Kashmir and elsewhere in the country,” he said.

Peoples Democratic Party President Mehbooba Mufti took to X, formerly Twitter, urging the Prime Minister’s Office to intervene in the matter.

“The GOI’s decision to remove additional duties on apples, walnuts, and almonds will have a devastating effect on local growers in J&K, who are already grappling with huge losses since 2019. I hope @PMOIndia reconsiders,” she wrote.

Watch | Thousands of Farmers and Workers Protest at Ramlila Maidan

The Wire spoke to farmers, union leaders, and anganwadi workers from different regions to understand their demands.

Thousands of labourers and farmers gathered at New Delhi’s Ramlila Maidan from all over the country on Wednesday, April 5, with numerous demands to the Union government. The Wire spoke to farmers, union leaders, and anganwadi workers from different regions to understand their demands.

“This is not the first time we have come to Delhi with our demands. In the past, we have come with the same demands of minimum support price (MSP), debt waiver, and withdrawal of the Electricity Bill, but the government is not listening to us,” said farmer Shamser Singh from Haryana, while talking to The Wire.

ASHA workers and anganwadi workers complained about not receiving their salaries on time. A worker who spoke to The Wire said, “During the COVID-19 lockdown when everyone was sitting at home, we were working day and night. But what did we get in return? Nowadays, we are still working day and night, and we are not even receiving our salaries on time.”

Farmers from Himachal Pradesh, who grow apples, spoke about the reasons that are forcing them to shift to other crops. “Apple can no longer support our survival. We are looking for different opportunities as the situation is not the same anymore,” the apple growers told The Wire:

Can Apple Farmers Revive the Congress’s Fortunes in Himachal Pradesh?

It appears that the Congress is hoping for a repeat of the 1993 election when the BJP government had lost against the backdrop of a similar agitation by apple farmers in the state.

Chandigarh: Apart from restoring the old pension scheme, the Congress in its manifesto released on November 5 promised to increase the income of apple growers in Himachal Pradesh.

The state is set to go to polls on November 12, Saturday. The counting of votes will be held on December 8.

Apple growers have a considerable political influence in around 18-20 constituencies in the Shimla region. These include Solan, Sirmour and parts of Kullu and Mandi districts.

In its manifesto, the Congress has promised to set up a horticulture commission with apple growers as its members. Based on the commission’s recommendation, the state will decide on the minimum support price (MSP) for each category of apple.

The party manifesto added that market players won’t be allowed to buy apples from the growers below the MSP, even if it is Adani’s company.

Adani Agri Fresh, a subsidiary of Adani Group, is among the major apple procurers from the Himachal Pradesh market.

The Wire had earlier reported that over the last few years, apple growers have been unhappy with Adani Group’s lower procurement rates, which had led to a huge uproar among the farmers.

In August, apple farmers had staged protests outside the Adani Group centres in the state, against lower procurement rates, rising input costs and depleting incomes. Later, they had also held protests against the hike in the goods and services tax (GST) on packaging material from 12% to 18%.

Apple growers protest outside Adani procurement centre in Rohru, Himachal Pradesh, on August 22, 2022. Photo: author provided

A similar agitation in 1990 had led to the downfall of the Shanta Kumar-led BJP government in the 1993 election. The violent agitation had left three farmers dead.

It appears that the Congress is hoping for a repeat of the BJP’s downfall in the upcoming polls. The BJP, on the other hand, seems to believe that the situation is under control as it has rightly addressed the growers’ concerns in its manifesto.

Also read: Ahead of Himachal Pradesh Polls, Congress and BJP Appeal to Religious Sentiments

Poll promises

In response to the Congress’s strategy, the BJP in its manifesto said that it will ensure that the apple farmers do not have to pay more than 12% GST rate on apple packaging material.

It also promised a market intervention scheme (MIS) for apples and other fruits to ensure the profitability of growers.

In 2020, the Union government had implemented an MIS in Kashmir to protect the interest of apple growers.

Under this scheme, government agencies purchase apples from the growers to stabilise the procurement rates, ensuring that the growers don’t face any losses. The losses, if any, are incurred proportionately by the state and the Union government.

This scheme is useful, especially, when there’s a drop in the prices of apples.

Reacting to the BJP’s manifesto, Rajiv Shukla, AICC in-charge for Himachal Pradesh, dubbed it as another ‘jumla’ (gimmick), saying that the BJP should first present its report card for the last five years.

“The BJP is saying that 12% GST will be levied on the cartons of apples, while the Congress is saying that there will be no GST on the cartons and that whatever is applicable will be removed,” said Shukla.

Leader of Opposition Mukesh Angihotri said since the BJP has been insensitive to the demand of apple growers, it will face defeat in this election.

Chetan Bragta, BJP’s candidate from the Jubbal-Kotkhai constituency, one of the major apple belts of the state, told The Wire that the Congress’s narrative is misleading and lacked substance.

“I am not saying that apple growers don’t have issues. The BJP government was very supportive of the growers and addressed their demands on priority. We have rightly taken up their pending issues in our poll manifesto, which will be addressed by our government,” he added

Lokinder Bisht, an apple grower from Shimla and also president of the Progressive Growers Association, however, told The Wire that the growers’ resentment against the government cannot be ignored.

“The prime reason [for the growers’ resentment against the government] is the increase in input cost, which almost doubled, especially after COVID-19 and there was no relief from the government,” he added.

Sanjay Chauhan, co-convener of the Sanyukt Kisan Morcha (SKM), which had organised the protests against the BJP government and Adani Group, told The Wire that the government has been making a lot of promises ahead of the election but the question is, why did it not deliver on its promises earlier.

“It was due to our agitation that the issues of apple growers have become the focus of this election. The question is, who can deliver on their promises this time,” he added.

The election campaign is set to end on November 10.

On November 8, BJP national president J.P. Nadda made a last ditch effort to woo apple growers by addressing several rallies in apple orchard constituencies.

Addressing a rally at Rampur Bushahr, one of the major apple growing regions of the state, Nadda asked the people to fight for their future rather than get carried away by emotions.

Congress leader Sachin Pilot, while addressing a rally at Kharapathar, the main trading centre for apples in the Jubbal-Kotkhai region, said that the Rs 5,000-crore apple economy of the state has suffered adversely due to the ignorant attitude of the government.

“Apple’s economy is one of the biggest economies of the state. The BJP government abolished subsidies on the pesticides and fungicides in the state,” he said.

He added that the Congress will fulfil the commitments made to the people in its manifesto.

Himachal’s Apple Growers Gherao Adani Group Centres Over Low Procurement Rates, Rising Input Costs

In 2020, Adani offered Rs 88 per kg for premium quality apples, which after two years was reduced to Rs 76 per kg. The apple growers have, therefore, demanded an increase in procurement prices by at least 30%.

Chandigarh: Jagdish Khimta, an apple grower from Jubbal in Shimla district, did not fetch more than Rs 60-62 per kg by selling his produce to the Adani Group.

He told The Wire that his earning was way less than his expectations this season.

“Growers have to take care of the apple crop like their child throughout the year. It is painful how market players are devaluing our effort by offering far low procurement rates. Sadly, there is no intervention from the state government either,” said Khimta.

Rising input costs and depleting incomes have led to discontentment among apple growers over the last few years. In addition, the hike in the goods and services tax (GST) on packaging material coupled with rising inflation has further aggravated the situation.

The price of the apple crop has also dropped in the open market for various reasons. Firstly, the apple production in Himachal Pradesh this year was higher than last year. Therefore, market players and mandi traders offered lower rates to growers.

Second, this year’s brutal heatwave led to bad quality of the crop such as an increase in discolouration content and stunting of the apple. Red skin colouration and size of the apple are highly associated with better returns for the growers.

Also read: After Brutal Heatwave, Himachal’s Apple Farmers Say Over 30% Of Crop Damaged

As soon as procurement season began in July last week, the growers staged protests against the hiked GST on packaging materials and other challenges the apple industry is facing.

Growers gheraoed Adani stores

After protesting against the state government, apple growers have now given an ultimatum to Adani AgroFresh – one of the Adani Group’s branches involved in apple procurement in Himachal – to revise its rates for procuring the fruits.

Under the banner of Sanyukt Kisan Manch (SKM), they gheored all three procurement centres of the Adani Group at Rohru, Rewali and Sainj in Shimla district on August 25, Thursday. The growers said they were agitated over Adani Group offering them lower procurement rates this season.

They have demanded the company to immediately increase its procurement prices by at least 30% over Rs 76 per kg for premium quality apples.

Currently, Adani AgroFresh’s rates vary from Rs 15 per kg for C grade quality apples to Rs 76 per kg for top quality apples, which according to the growers fetches the company not less than Rs 250-300 per kg in off season.

Apart from that, they have also demanded that the produce should be weighed in front of the growers and their representatives when the colour sensors are calibrated.

Apple growers protest outside Adani procurement centre in Rohru, Himachal Pradesh, on August 22, 2022. Photo: author provided

In response to The Wire’s query on the growers’ protest, Adani AgroFresh spokesperson said in an email that it finalises its offer rates after “local mandis set their procurement prices,” which the company “further discusses with the farmers” at their joint meetings.

The spokesperson also claimed that their procurement prices are attractive, adding: “We also offer apple crates to growers to carry their produce for retaining quality, transparent sorting, prompt payment terms and fertilisers and hail nets at low cost among other extension services.”

He further said that the company’s procurement has been very good so far this season. In just 10 days, it has already procured 7,500 tonnes of apples against a target of 25,000 tonnes.

Speaking with The Wire, SKM convener Harish Chauhan said that Adani Group stores may not be procuring more than 25,000 tonnes out of a total crop output of 6 lakh tonnes. But the problem is that their procurement rates set the benchmark and influence the open market every year.

“This year was no different. As soon as it announced the procurement rates, there was a slump [in prices] in the market,” he said.

In 2020, Adani offered Rs 88 per kg for premium quality apples. However, two years later, they are offering Rs 76 per kg for the premium quality apples. Instead, it should be somewhere between Rs 90-100 per kg if one takes into account the spiralling input cost, he said.

“How is this justifiable when the growers’ input cost has increased so much but Adani’s procurement rates have gone down,” he asked.

Apple growers and government at loggerheads

Earlier this month, the Bharatiya Janata Party-led state government had formed a committee under the chairmanship of vice-chancellor of Y.S. Parmar University of Horticulture and Forestry, Solan, to fix the apple procurement prices.

However, the first meeting of the committee, which was held on August 24 in Shimla, ended on a sour note.

During the course of the meeting, SKM members had asked the government to produce a copy of the memorandum of understanding (MoU) signed with big companies like Adani Group, which were given subsidies worth crores to set up their procurement centres in Himachal Pradesh.

However, officials present during the meeting said they were unaware of any such MoUs signed between the government and these companies, SKM said in its press release.

SKM’s Chauhan said that they wanted to find out under what terms and conditions these big companies were allotted subsidised lands and other facilities to set up procurement centres in the state.

He added that if the whole idea behind subsidies is strictly the welfare of the apple growers, then both the state and the companies have failed in providing it.

However, as per the state government, the meeting was successful in addressing the concerns of the growers.

After the meeting, the chairman of the committee, Rajeshwar Chandel, told the media that all the private procurement stores were issued directions to revise their colour classification of apples.

Currently, these stores have three categories for colour classification: 80-100% (grade A premium quality), 60-80% (grade B) and below 60% (grade C).

“We have asked these stores to revise the colour classification to 70-100%, 50-70% and up to 50%. The proposed classification will push apples into a higher colour category, fetching a better price,” he added.

The Wire spoke to some growers who said that the Adani Group, in the meeting, had assured some rate correction and change in colour classification as well.

Also read: In Poll-Bound Himachal, Disgruntled Apple Growers May Be a Stumbling Block for BJP

Political impact

The apple growers’ protests in Himachal Pradesh have come ahead of the assembly elections in November.

Ramesh Chauhan, a political commentator and professor of political science at Shimla University, told The Wire that apple growers have a considerable influence in as many as 19-20 assembly constituencies in Shimla, Solan, Kullu and Kinnaur districts. This means that in a small state like Himachal Pradesh, where the total number of assembly seats are not more than 68, they form a strong clout.

“They may influence the outcome of the coming election if their protest continues,”he said.

He also added that protests by growers amid the 1989 and 1993 elections played an important role in defeating the party in power.

In Poll-Bound Himachal, Disgruntled Apple Growers May Be a Stumbling Block for BJP

Apple growers have been protesting against the state government for hiking taxes on packaging material and fertilisers, and ‘exploitation’ by traders.

Chandigarh: Apple growers, who play a vital role in the Himachal economy and also have a considerable political influence in at least 18-20 constituencies in the Shimla region, have become a bone of contention for the ruling Bharatiya Janata Party (BJP) ahead of the assembly polls in November.

Rising input costs have led to a massive drop in their income. For this, they have blamed the government for hiking taxes and ‘exploitation’ by traders.

Besides, heat wave and drought conditions this year have also damaged their crop, thereby fetching them far less rates in the open market due to stunting in the apple size and open cracks.

These factors have pushed them to protest against the BJP-ruled state government.

As many as 27 grower associations under the banner of Sanyukt Kisan Manch held protests at multiple locations in the state last week over government failure to protect the interest of apple growers.

It started with a protest in Rohru in Shimla district on July 11.

A protest by apple growers in Rohru, Shimla, on July 11. Photo: Author provided

On July 28, chief minister Jai Ram Thakur met with the Sanyukt Kisan Manch in Shimla and decided to constitute a committee to find solutions to their grievances.

Despite Thakur’s announcement, the apple growers decided not to cancel their scheduled gherao of the Himachal Secretariat in Shimla on August 5 over their key demands.

Several organisations have criticised the Thakur government for doing “too little, too late” as they felt that the new committee would not be able to provide any immediate financial relief to the growers.

Meanwhile, some apple growers have claimed that the state horticulture minister Mahender Singh did very little to help them.

Dimple Panjta, president of The Himalayan Society For Horticulture and Agriculture Development, a Rohru-based NGO consisting of a large number of apple growers, told The Wire that in the last four and half years of BJP rule, the horticulture department hardly took any constructive steps to help the growers.

“By the time the new committee would give its recommendations, the current apple season would already be over,” he said.

He asked, “Why the government was not proactive to look into the issues concerning Himachal Pradesh’s apple industry. Why does the government only wake up when people start protesting.”

Also read: Adani in the Eye of the Storm as Himachal Apple Prices Crash

The challenges

Lokinder Bisht, who is the president of Himachal Progressive Growers Association, told The Wire that the apple industry in Himachal Pradesh is fragile, as it is highly influenced by market forces.

Bisht said in the last two years, the input cost of apple growers has almost doubled but the income level has not gone up at the same pace. In economics, there is a term called the law of diminishing returns, which applies to a phenomenon when investment in a particular area increases, but the rate of profit from that investment cannot continue to increase.

“This is precisely what we are facing today. Part of the problem is government policies and a lack of regulation,” he said.

He added that packaging material like cartons, trays and machinery equipment used in the apple industry should be kept in the lowest bracket of the goods and services tax (GST). However, the Union government hiked the GST on packaging material from 12% to 18%.

The hike was announced in October last year, but its impact was felt this year when market forces increased the rate of cartons, trays and other packaging material used in the apple industry. Apart from this, GST on fertiliser pesticide and fungicide was also hiked to 18%.

Bisht said that the state government recently announced a 6% subsidy on the purchase of cartons from the Himachal Pradesh Horticulture Produce Marketing and Processing Corporation (HPMC) from July 15. This was done to compensate for the 6% increase in the GST rate on cartons, he said.

But the irony is that carton rates of HPMC even after the 6% subsidy waiver is higher than open market rates.

Moreover, most of the growers have already bought the packaging material and many have placed orders from where they usually buy, he added.

“On the contrary, apple growers are not fetching proper rates for their produce. Every year the market opens with good prices, especially for premium varieties of apples. We have already witnessed the slump in the beginning of the season,” he said.

Ashutosh Rana, a member of the Sanyukt Kisan Manch, blamed it on the lack of regulated policies. The state government has no minimum support price-based procurement system. The state agencies buy only C-grade apples to make jams or apple juice. They offer just Rs 10 per kilogram. However, a grower spends around Rs 30-32 to grow one kilogram of apples.

Moreover, the rates of fertilisers or agriculture equipment by state market agencies like HPMC are much higher than market price.

“We want to ask the state government if the state marketing agencies are meant for the welfare of apple growers or are they money making machines. Earning profit at the peril of growers is unacceptable to all of us,” he added.

Added to climate change, apple growers are also facing unfavourable government policies. They want government support on their key demands, otherwise they will have a tough time in near future, he added.

Also read: Interview | as AAP Sets Sights on Himachal Polls, New State In-Charge Feels ‘Change’ Is Near

The key demands

The Sanyukt Kisan Manch has submitted a memorandum to the chief minister which mentioned as many as 20 demands in detail.

Among the key demands is the waiver of the GST on packaging material like wooden cartons and trays used in the apple industry. Besides, it has asked the government to introduce an MSP for all A, B and C level varieties of apple to regulate the market.

Last year, there was a huge uproar among apple growers when Adani farms, who is the biggest purchaser of apples in Himachal Pradesh’s mandis, announced much lower prices of the premium apple varieties, thereby disturbing the entire market.

Their other demands included an increase in the import duty of apples coming from Iran and other foreign countries. They claimed the import of apples has eaten into the profit margin of local growers.

They also sought subsidies from the state on the purchase of agriculture equipment, fertilisers, etc. in order to bring down their increasing input cost.

The Sanyukt Kisan Manch has also asked the state to constitute a horticulture board for the welfare of horticulturists. The chief minister has assured the growers that the government would consider this demand.

They have also asked the state to waive off collection of taxes or charges levied on the apple growers at various barriers.

Why is it important for the BJP to pacify apple growers

Apple growers of Himachal Pradesh have a considerable influence in districts like Kinnaur, Shimla, Sirmaur, Solan, Kullu and even parts of Chamba.

Therefore, the saffron party needs to pacify the growers at the earliest before their protests spoil the BJP’s chances of making a comeback in the state. This is important because no political party in Himachal Pradesh has won the polls for the second time since 1985.

Odds are already stacked against the Thakur government over a number of issues, including allegations of non-performance and factionalism. The protest by the apple growers have now added to their troubles.

Meanwhile, the Congress has attacked the BJP for ignoring the apple growers since the party formed the government five years ago.

Congress leader of opposition Mukesh Agnihotri told The Wire that the current BJP government has failed to provide welfare schemes to apple growers. Last time when Prime Minister Narendra Modi had come here, he had promised that his government will especially focus on the apple growers; however, their issues remain unresolved to this date.

“Growers have always benefited from the Congress government policies. We are again duty bound to ensure that once we form the government here, all their issues will be sorted out. We will officially release our blueprint for the welfare of apple growers and other horticulturists before the election,” he said.

Apple Goes the Sugarcane Route: Hundreds of Crores Unpaid to Growers in Himachal

Apple growers held demonetisation responsible for the problem, as agents do not pay them at the time of sale by claiming money is not in circulation.

Shimla: Sugar mills in Uttar Pradesh are notorious for delaying paying the dues of sugarcane farmers by several months, and often even by years. Now, arthiyas (commission agents) in Himachal Pradesh have decided to compete with the sugar mills.

Outstanding dues of apple growers in the hill state are in excess of Rs 100 crore by a conservative estimate, and upwards of Rs 1,000 crore according to another. Ironically, the conservative estimate comes from an organisation backed by the CPI(M) and the more radical estimate comes from a body close to the ruling Bhartiya Janata Party (BJP).

“For the past four or five years, the arthiyas have not been making payment to apple growers. The dues are now in excess of Rs 100 crore,” said Sanjay Chauhan, secretary of the Kisan Sangharsh Samiti (KSS), which is backed by the CPI(M).

Harish Chauhan, president of the Himachal Pradesh Fruit, Vegetables and Flowers Growers Association (HPFVFGA), which has links to the BJP, concedes that he doesn’t often agree with the KSS. But, agrees on this particular issue, apart from the amount of pending dues, which he contends are higher.

Harish Chauhan in Shimla. Credit: Kabir Agarwal

“The government could have done much more to address the problem. A proper system is need to ensure that apple growers are paid on time. That has not been done and the dues are now well in excess of Rs 1,000 crore” Harish said.

An accurate assessment of the amount of pending dues of apple growers in Himachal Pradesh is difficult because unlike in the case of sugarcane, the government is not involved in the sale and purchase of apples. Thus, the information is not collated.

Harish argued that all apple growers have suffered because arthiyas have not paid the dues, but not all have come forward to register their complaint. “Only few have registered complaints with the APMC (Agriculture Produce Marketing Committee). They are afraid that if they do, they might not get any payment at all,” he said.

Apple orchards seen from Baghi. Credit: Kabir Agarwal

So far, 32 growers have come forward to register first information reports (FIRs) against arthiyas under sections 506 (criminal intimidation) and 420 (cheating). The amount of unpaid dues mentioned in the FIRs total to almost Rs 2 crore for the 2017 and 2018 seasons.

“The scope is of course much bigger, because not everyone has registered FIRs,” said Sanjay Chauhan.

Also Read: There Are Ecological Limits to Growth – Just Look at Himachal Pradesh

The Wire met around 50 apple growers in Baghi, a small village in the Shimla Lok Sabha constituency at an elevation of 8,300 feet. Some had travelled about 70 kilometres in incessant rain on a treacherous road in the penetratingly cold weather.

“When we heard that media personnel from Delhi are coming to Baghi, we decided to come here too. We have suffered a lot and the media has not highlighted the issue enough,” said Sushil Chauhan, who had travelled from Kiari, 50 kilometres away.

He has unpaid dues in excess of Rs 11 lakh. “I sold apples worth around Rs 15 lakh. I have only been paid 4 lakh. The arthiya is not even traceable now,” he said.

Budding apple fruit in an orchard in Baghi. Credit: Kabir Agarwal

According to the Himachal Pradesh Agricultural and Horticultural Produce Marketing Act of 2005, payment must be made to the seller on the same day as the transaction.

Sushil has outstanding debt of Rs 9 lakh. “Repayment is due in July. I will have to pay penalty if I don’t get my dues by then,” he said.

He is one of the 32 growers who have lodged FIRs. Another is Roshan Lal, a grower in Baghi, who is owed Rs 2 lakh for the 2018 season alone. “I have also not been paid Rs 60,000 for the 2017 season,” said Lal. “The dues are piling up. We are living on credit like in America.”

Most growers agreed that the payment problems began in earnest after demonetisation in November 2016. “Before that, the pending dues would only be about 10% of the total amount. Around 30 or 40% of the amount was paid to us in cash at the time of sale,” said Sant Lal Bhardwaj, a grower based in Baghi. “But, that changed after demonetisation. The arthiyas stopped paying any cash at the time of sale.”

Harish Chauhan, who belongs to the organisation with links to the BJP, argues that demonetisation gave the arthiyas an excuse to delay payment. “Notebandi changed everything. It changed the system, which was working fine. Now, arthiyas say there is no cash in circulation and do not pay the growers,” he said, when we met him in Shimla. “Even now, they have the excuse that the government does not allow large cash transactions.”

Sanjay Chauhan at the CPI(M) office in Shimla. Credit: Mohammed Mehroz

Sanjay Chauhan was also critical of demonetisation and added, “The APMC is not playing its role. tehy should ensure that payment is made on time. But, there is a nexus between the politicians, the APMC board and the arthiyas that is allowing this.”

Hemant Thakur, a grower from Jhubbal, expressed anguish that though the issue of non-payment affects a large population (1.7 lakh households) in Himachal, it is not an election issue. “No one is talking about it, neither the BJP nor the Congress. No MLA, except one, even raised the issue in the vidhan sabha,” he said.

Also Read: Thousands of Farmers March to Shimla, Demand Land Rights

All growers spoke favourably of the one MLA who did raise the issue, Rakesh Singha of the CPI(M), who won from the Theog constituency in 2017. “We did not vote for him in the vidhan sabha elections, but we are very thankful to him,” said Thakur.

“He is an apple grower himself and can understand our problem. He and the CPI(M) have raised the issue in the vidhan sabha and organised us into a force. Earlier, we were scared to speak against arthiyas. Not anymore,” said Sushil Chauhan.

The growers are particularly critical of the Congress for not raising the issue. “We don’t expect the BJP to raise this issue because they are in power. But, why can’t the Congress make it an election issue? I am sure all growers would be thankful to them and support them,” said Roshan Lal.

Under pressure from organisations like the KSS and the HPFVFGA, the Himachal government announced on May 9 that it is setting up a special investigation team (SIT) to probe the issue of non-payment of dues to farmers.

Watch | Shimla: Over Rs 100 Crore Unpaid Dues yet Apples Growers Not an Electoral Issue

The Sadak se Sansad has reached the Shimla Lok Sabha constituency in Himachal Pradesh.

The Sadak se Sansad has reached the Shimla Lok Sabha constituency in Himachal Pradesh and we speak to a group of apple growers affected by non-payment of their dues.