Govt introduces Minimum Import Price for apples in J&K to support local growers

Source: The post is based on the article “Govt introduces Minimum Import Price for apples in J&K to support local growers” published in TOI on 18th May 2023

What is the News?

The Central Government recently introduced the Minimum Import Price (MIP) for apples in Jammu and Kashmir (J&K).

What is Minimum Import Price(MIP)?

MIP is a temporary measure to provide protection to domestic industry from predatory pricing of imports. Below this price, import of the commodity is not allowed.

Directorate General of Foreign Trade (DGFT) is an arm of the commerce ministry which frames rules related to exports and imports.

Why has the Government introduced MIP for apples in J&K?

Jammu and Kashmir have been a prominent hub for apple cultivation for many decades. In 2019, Kashmir alone produced a staggering 1.9 million metric tons of apples, the highest in the country.

Despite the region’s success in apple production, local growers have faced numerous challenges in recent years due to the influx of tax-free apples from foreign countries. 

This unfair competition has adversely affected their livelihoods. The absence of import taxes on foreign apples created an uneven playing field for J&K apple growers, who had to bear additional expenses such as transportation, packaging, and cold storage. 

As a result, their profits declined, making it increasingly difficult to compete with the imported produce flooding the market at lower prices.

Recognizing the plight of J&K apple growers and the need to protect their interests, the central government has taken a proactive step by introducing the Minimum Import Price (MIP) for apples.