By IANS,
Shimla : Himachal Pradesh wants higher import duty on apple juice concentrate from China, saying this was necessary to save the domestic industry.
Apple concentrate is used for fruit juices, nectars and drinks.
“We are facing tough competition from China, which is marketing the apple juice concentrate at much lower prices in the country,” Horticulture Minister Narender Bragta told reporters here Sunday.
According to him, China is selling the apple concentrate to Indian food and beverage companies at Rs.45-50 per kg whereas the concentrate produced by the state-run Himachal Pradesh Horticultural Produce Marketing and Processing Corp (HPMC) is sold at Rs.80 per kg.
“The cost of production of the concentrate here is Rs.70-75 per kilogram but the Chinese are selling it at Rs.45-50, which also includes the import duty,” he added.
Bragta said the import duty on Chinese juice concentrate should be increased to save the domestic apple fruit industry.
“The import duty should be increased to 75 percent from 37.5 percent,” he said, adding that “under the World Trade Organisation regime, anti-dumping duty up to 75 per cent could be imposed to protect the economic interests after designating the juice concentrate as a special product”.
HPMC procures the apples directly from farmers. In 2008-09, of the 21,400 tonnes procured, about 8,000 tonnes were processed.
It had produced over 721 tonnes of juice concentrate, of which 400 tonnes are lying unsold.
“Last year, Parle Agro was our major buyer, but this time there is hardly any bulk order,” an HPMC official said.
Other companies that buy the apple concentrate include Godrej Industries, Nestle and Mohan Meakin.
Himachal Pradesh is one of India’s major apple-producing regions, with more than 200,000 families engaged in the cultivation of the fruit.
The state produced 510,000 tonnes of apples in 2008-09, though less than the 593,000 tonnes produced in 2007-08.
The apple economy of the state is around Rs.1,500 crore and flourishes mainly in Shimla, Kullu, Mandi, Lahaul and Spiti, Kinnaur and Chamba districts.