23 Feb 2026·Source: The Hindu

5 min

EconomyEXPLAINED

J&K Apple Traders Concerned Over India-U.S. Trade Deals

Q: If a Mains question asks me to 'critically examine' the impact of these trade deals on J&K's apple industry, what points should I include?

A balanced answer should include: Key points: Positive aspects: Potential for improved trade relations with the U.S. and EU, access to wider markets for other Indian products.. Negative aspects: Threat to the livelihoods of apple farmers in J&K due to increased competition, potential for a decline in the region's economy.. Government measures: Discuss any government initiatives to support local apple farmers and mitigate the negative impacts of the trade deals, such as subsidies or marketing assistance.. Overall assessment: Offer a balanced conclusion, acknowledging both the potential benefits and drawbacks of the trade deals, and suggesting ways to minimize the negative impacts on J&K's apple industry. Exam tip: Remember to present both sides of the argument. Don't just focus on the negative impacts. Showing a balanced perspective will get you more marks.

Q: What are the strategic options for the Indian government to balance trade agreements with the protection of local industries like apple farming in J&K?

India has several options: Key points: Negotiate safeguards: Include clauses in trade agreements that allow for temporary import restrictions if domestic industries are severely affected.. Provide subsidies: Offer financial assistance to local farmers to help them compete with cheaper imports. This could include subsidies for inputs like fertilizers or for marketing and transportation.. Invest in infrastructure: Improve infrastructure in apple-growing regions, such as cold storage facilities and transportation networks, to reduce post-harvest losses and improve the quality of local produce.. Promote branding: Help local apple farmers develop strong brands for their products to differentiate them from imported apples and appeal to consumers who value locally grown produce.

Apple producers in J&K worry about competition from cheaper imports.

J&K Apple Traders Concerned Over India-U.S. Trade Deals

Photo by Omkar Ambre

Background Context

Trade agreements function by establishing a framework of rules and commitments that govern trade between participating countries. Key aspects of how trade agreements work: • Tariff Reduction: Agreements often involve reducing or eliminating tariffs (taxes on imports) on specific goods. • Quota Systems: Some agreements use tariff-rate quotas (TRQs), allowing a certain quantity of goods to be imported at a lower tariff rate, while quantities exceeding the quota are subject to a higher tariff. • Rules of Origin: These rules determine the country of origin of a product, which is important for determining which tariffs and regulations apply. Trade agreements can be bilateral (between two countries) or multilateral (among multiple countries).

Why It Matters Now

The current concern among apple traders in J&K stems from India's trade deals with the U.S. and the EU, which reduce import duties on apples. This is relevant because: • Reduced Import Duties: Lower duties could lead to an influx of cheaper apples from these regions. • Impact on Local Producers: This influx could undercut local apple producers, especially those relying on controlled-atmosphere cold storage to sell their produce off-season. • Economic Concerns: Parties are urging the Centre to relook the deal to protect the interests of local apple producers.

Key Takeaways

•Trade deals aim to reduce trade barriers between countries.
•Reduced import duties can lead to cheaper imports.
•Local producers may face challenges competing with cheaper imports.
•Controlled-atmosphere cold storage helps in off-season pricing.
•J&K's apple production significantly contributes to its economy.
•Trade agreements can have uneven impacts on different regions and sectors.
•Government intervention may be needed to safeguard local producers.

Different Perspectives

•Some argue that trade deals benefit consumers by providing access to cheaper goods.
•Others argue that they can harm local industries and employment.
•Economists debate the overall welfare effects of trade liberalization, considering both consumer benefits and producer losses.

Related Concepts

Tariffs Quotas Free Trade Agreements Comparative Advantage Horticulture Controlled Atmosphere Storage

Apple traders in Jammu & Kashmir are concerned about the potential impact of recent trade deals with the U.S. and EU, which reduce import duties on apples. India's decision reduces the basic customs duty on apples imported from the United States from 50% to 25%, setting a Minimum Import Price (MIP) of ₹80 per kilogram. Under the India-European Union trade deal, import duty on fresh fruits has been reduced to 20% under a Tariff Rate Quota (TRQ) system, initially allowing 50,000 tonnes of apples per year at the reduced rate, increasing to 1,00,000 tonnes over the next 10 years.

These deals have sparked worries among fruit growers in the Kashmir Valley, who fear that easy access for American apples could devastate local produce. Fayaz Ahmad Malik, president of the Sopore Fruit Mandi, notes the inability of local growers to compete with subsidized US growers who also have access to crop insurance, unlike their Indian counterparts. The apple industry is the backbone of Jammu and Kashmir’s economy, especially in the Kashmir Valley, producing 75% of the total apple production in the country, valued at ₹10,000 crore and involving around 50 lakh people directly or indirectly.

J&K's apple production constitutes 50% of its total horticulture output. In 2024, apple production in J&K stood at 21 lakh metric tonnes, contributing over 70% of India’s total apple production. Political leaders and trade bodies in J&K are demanding safeguards, urging the Centre to re-evaluate the trade agreements and consider excluding apples from the deals, alongside expansion of high-density apple cultivation, interest-free loans under the Holistic Agriculture Development Programme (HADP), expansion of controlled-atmosphere storage infrastructure, and activation of dry port projects to improve logistics.

This situation highlights the trade-off between lower tariffs benefiting consumers and the competitive pressure on domestic producers. It underscores the need for technological upgrades, farm consolidation, and value-chain modernization in Indian agriculture. This news is relevant to UPSC exams, particularly in the context of the economy (GS Paper 3) and issues related to trade agreements and their impact on the agricultural sector.

Key Facts

Apple production comprises 50% of the total horticulture production of J&K.

The horticulture sector in J&K produces roughly ₹10,000 crore in revenue.

The horticulture sector in J&K employs about 35 lakh individuals.

In 2024, apple production in J&K stood at 21 lakh metric tonnes.

Over 173.07 lakh hectares of land in J&K are under apple orchards.

J&K contributes to over 70% of the total apple production in the country.

UPSC Exam Angles

GS Paper 3 (Economy): Impact of trade agreements on the agricultural sector

GS Paper 2 (Governance): Government policies and interventions for development of various sectors

Potential questions on trade liberalization, protectionism, and agricultural subsidies

In Simple Words

India is making deals to trade more easily with the U.S. and Europe. This means it might be cheaper to buy apples from those countries. Apple farmers in Kashmir are worried because these cheaper apples could take away their customers.

India Angle

Many families in Jammu and Kashmir depend on growing and selling apples. If apples from other countries become cheaper, these families could lose income and struggle to make a living.

For Instance

It's like when your local grocery store starts selling imported fruits at a lower price than the ones from nearby farms. People might buy the cheaper, imported fruits, hurting the local farmers.

This affects the prices you pay for apples and the livelihoods of farmers who grow them. It shows how global trade deals can have a direct impact on local communities.

Trade deals can bring cheaper goods, but they can also hurt local businesses.

Apple traders in Jammu and Kashmir are worried about the impact of trade deals with the U.S. and the EU, which reduce import duties on apples. These deals could lead to cheaper apples from the West flooding the Indian market, undercutting local producers, especially those relying on controlled-atmosphere cold storage. J&K's apple production constitutes 50% of its horticulture, employing 35 lakh people. Parties are urging the Centre to relook the deal and ensure safeguards for apple producers.

Expert Analysis

The concerns of apple traders in Jammu & Kashmir regarding the recent trade deals with the U.S. and EU highlight several key economic concepts. These include Import Duties, Tariff Rate Quotas (TRQ), and the broader implications of Free Trade Agreements on domestic agricultural economies.

Import Duties are taxes imposed on goods and services imported into a country. In this case, India reduced the basic customs duty on apples imported from the United States from 50% to 25%, with a Minimum Import Price (MIP) of ₹80 per kilogram. The purpose of import duties is often to protect domestic industries from foreign competition by making imported goods more expensive. However, reducing these duties, as seen in the India-U.S. trade deal, can lead to cheaper imports, potentially undercutting local producers. This is particularly concerning for J&K's apple growers, who fear they cannot compete with the subsidized U.S. apple industry.

Tariff Rate Quotas (TRQ) are a two-tiered trade policy mechanism. Under the India-European Union trade deal, import duty on fresh fruits has been reduced to 20% under a TRQ system. This system allows a specified quantity of imports (in this case, apples) to enter at a reduced tariff rate (20%), while any imports exceeding this quota are subject to a higher tariff. The initial quota is set at 50,000 tonnes of apples per year, increasing to 1,00,000 tonnes over the next 10 years. TRQs are used to balance the interests of domestic producers, who benefit from protection, and consumers, who gain access to cheaper goods. However, the effectiveness of a TRQ in protecting domestic producers depends on the size of the quota and the difference between the reduced and regular tariff rates.

Free Trade Agreements (FTAs) are agreements between two or more countries to reduce or eliminate trade barriers such as tariffs and quotas. The India-U.S. and India-EU trade deals, which include reduced import duties on apples, are examples of FTAs. While FTAs can boost trade and economic growth by increasing market access and reducing costs for consumers, they can also pose challenges for domestic industries that are unable to compete with cheaper imports. The concerns raised by apple traders in J&K illustrate the potential negative impacts of FTAs on local agricultural economies, particularly in regions where production costs are higher and government support is limited.

For UPSC aspirants, understanding these concepts is crucial for both Prelims and Mains exams. Questions may arise on the impact of trade policies on specific sectors of the Indian economy, the role of tariffs and quotas in international trade, and the challenges and opportunities associated with FTAs. It is also important to be aware of the specific details of recent trade agreements and their potential implications for different regions and industries in India.

Visual Insights

Key Statistics: J&K Apple Industry

Highlights key figures related to the apple industry in Jammu & Kashmir and its potential impact due to trade deals.

J&K's Contribution to Horticulture: 50%
Employment in J&K Apple Industry: 35 lakh people

Frequently Asked Questions

1. How could the J&K apple issue potentially become a question in the UPSC Prelims exam?

UPSC might frame a question around the key economic facts related to apple production in J&K. For example, they could ask about the percentage contribution of apple production to J&K's total horticulture output or the revenue generated by the horticulture sector. A likely distractor would be to provide similar-sounding percentages or revenue figures that are incorrect.

Exam Tip

Remember the approximate figures: Apple production is about 50% of J&K's horticulture, which generates roughly ₹10,000 crore in revenue and employs 35 lakh people. Focus on these big, round numbers.

2. What's the core concern of apple traders in J&K regarding these trade deals?

The primary concern is that reduced import duties on apples from the U.S. and EU will lead to cheaper apples flooding the Indian market. This increased competition could significantly undercut the prices of locally grown apples from J&K, potentially devastating the livelihoods of local apple farmers and traders.

3. How does this situation connect to broader debates about trade liberalization in India?

The concerns of J&K apple traders reflect a larger debate about the impact of free trade agreements on Indian agriculture. While such agreements aim to boost economic ties and market access, domestic industries often fear increased competition from cheaper imports. This case highlights the tension between national economic policy and the protection of local agricultural interests.

4. If a Mains question asks me to 'critically examine' the impact of these trade deals on J&K's apple industry, what points should I include?

A balanced answer should include:

•Positive aspects: Potential for improved trade relations with the U.S. and EU, access to wider markets for other Indian products.
•Negative aspects: Threat to the livelihoods of apple farmers in J&K due to increased competition, potential for a decline in the region's economy.
•Government measures: Discuss any government initiatives to support local apple farmers and mitigate the negative impacts of the trade deals, such as subsidies or marketing assistance.
•Overall assessment: Offer a balanced conclusion, acknowledging both the potential benefits and drawbacks of the trade deals, and suggesting ways to minimize the negative impacts on J&K's apple industry.

Exam Tip

Remember to present both sides of the argument. Don't just focus on the negative impacts. Showing a balanced perspective will get you more marks.

5. What are the strategic options for the Indian government to balance trade agreements with the protection of local industries like apple farming in J&K?

India has several options:

•Negotiate safeguards: Include clauses in trade agreements that allow for temporary import restrictions if domestic industries are severely affected.
•Provide subsidies: Offer financial assistance to local farmers to help them compete with cheaper imports. This could include subsidies for inputs like fertilizers or for marketing and transportation.
•Invest in infrastructure: Improve infrastructure in apple-growing regions, such as cold storage facilities and transportation networks, to reduce post-harvest losses and improve the quality of local produce.
•Promote branding: Help local apple farmers develop strong brands for their products to differentiate them from imported apples and appeal to consumers who value locally grown produce.

6. How does the Tariff Rate Quota (TRQ) system work in the India-EU trade deal, and why is it significant?

The Tariff Rate Quota (TRQ) system allows a specific quantity of apples (initially 50,000 tonnes per year) to be imported from the EU at a reduced duty of 20%. Imports exceeding this quota are subject to a higher duty. This is significant because it provides a limited window for cheaper EU apples to enter the Indian market, potentially impacting domestic apple prices, but also offering some protection to local producers beyond the quota limit.

Practice Questions (MCQs)

1. Consider the following statements regarding the recent trade deals and their impact on the apple industry in Jammu & Kashmir: 1. The India-U.S. trade deal reduces the basic customs duty on apples imported from the U.S. to 25% with a Minimum Import Price (MIP) of ₹80 per kilogram. 2. Under the India-European Union trade deal, import duty on fresh fruits has been reduced to 20% under a Tariff Rate Quota (TRQ) system, initially allowing 1,00,000 tonnes of apples per year. 3. Apple production constitutes 75% of the total horticulture output in Jammu & Kashmir. Which of the statements given above is/are correct?

A.1 only
B.1 and 2 only
C.2 and 3 only
D.1, 2 and 3

Show Answer

Answer: A

Statement 1 is CORRECT: The India-U.S. trade deal reduces the basic customs duty on apples imported from the U.S. to 25% with a Minimum Import Price (MIP) of ₹80 per kilogram. Statement 2 is INCORRECT: Under the India-European Union trade deal, the initial allowance is 50,000 tonnes of apples per year, increasing to 1,00,000 tonnes over the next 10 years. Statement 3 is INCORRECT: Apple production constitutes 50% of the total horticulture output in Jammu & Kashmir, not 75%.

2. In the context of international trade, what is a Tariff Rate Quota (TRQ)?

A.A complete ban on the import of certain goods
B.A uniform tariff applied to all imports regardless of quantity
C.A two-tiered system allowing a specified quantity of imports at a reduced tariff rate, with higher tariffs for exceeding that quantity
D.A subsidy provided to domestic producers to make their goods more competitive

Show Answer

Answer: C

A Tariff Rate Quota (TRQ) is a two-tiered trade policy mechanism that allows a specified quantity of imports to enter at a reduced tariff rate, while any imports exceeding this quota are subject to a higher tariff. This system is used to balance the interests of domestic producers and consumers.

3. Which of the following factors contributes to the lower productivity of apple production in India compared to countries like the U.S. and New Zealand?

A.Larger average farm size in India
B.Widespread use of AI-based agricultural systems in India
C.Mechanized farming and advanced pruning techniques in Western countries
D.Better climate conditions in India

Show Answer

Answer: C

Western countries have higher apple productivity due to factors such as mechanized farming, advanced pruning and harvesting techniques, and AI-based agricultural systems. In contrast, India faces challenges such as small landholdings and lower adoption of advanced technologies.