Srinagar, Jan 29 (KNO): The Kashmir Valley Fruit Growers Cum Dealers Union, the apex body representing all major fruit growers' associations of the valley, has written to Union Finance Minister Nirmala Sitharaman urging the inclusion of key provisions for the promotion of the horticulture industry in the upcoming Budget 2025-26.
In the letter, accessed by the news agency—Kashmir News Observer (KNO), the association said that horticulture is a major contributor to the economy of Jammu and Kashmir, directly or indirectly supporting over seven lakh families.
The growers expressed concern over the lack of a Crop Insurance Scheme, which, despite being announced, has not been implemented. They urged the government to allocate budgetary provisions for its execution so that fruit growers, who frequently suffer losses due to natural disasters, can receive financial protection.
The letter also called for the reintroduction of the Market Intervention Scheme (MIS), which was previously launched to help fruit growers manage their produce. Every season, around 40% of the apple crop in Kashmir falls into Grade C (low-quality or fallen apples), leading to financial losses. Under the MIS, the Horticulture Planning and Marketing Department used to purchase these apples at government-fixed rates, providing relief to farmers. However, the scheme was discontinued several years ago. The association strongly urged the government to bring it back in Budget 2025-26 to support growers and stabilise the market.
Apart from these demands, the growers called for specialised horticulture estates on the pattern of industrial estates. They proposed that these estates should include Cold Storage (CA-Stores), Canning Factories, Juice Processing Units and other allied facilities under a single-window system to make it easier for farmers and dealers to store and process their produce efficiently. Such infrastructure would modernise the horticulture sector and significantly reduce post-harvest losses, they said.
A major concern highlighted in the letter was the 12% GST levied on cardboard boxes, insecticides, pesticides, and fertilisers, which has substantially increased production costs for fruit growers. Since wooden crates, once commonly used for packaging, have become expensive, growers said they have had no choice but to switch to cardboard boxes.
However, the high GST rate on packaging materials has added to their financial burden, the association said. It urged the government to either exempt these essential materials from GST or significantly reduce the tax rate to make transportation and production more affordable for small-scale farmers.
The growers also requested that Tree Spray Oil, which is vital for maintaining orchards, be categorised as an agricultural product to allow for better subsidies and easier availability. They called for the establishment of soil, pesticide and fruit quality testing laboratories in Jammu and Kashmir, ensuring better standards and increased productivity.
Expressing concern over the ageing orchards in the valley, the growers demanded a dedicated budget allocation for the rejuvenation of fruit orchards and an emergency relief fund to support them during natural calamities such as untimely snowfall, heavy rains, and strong winds, which frequently damage crops.
Another critical issue raised in the letter was the Kisan Credit Card (KCC) loans taken by small fruit growers. “Many farmers, especially those affected by the 2014 floods, COVID-19, droughts, and political unrest, have been unable to repay their KCC loans,” the association said. It urged the government to waive off these loans to prevent further financial distress among struggling fruit growers.
The letter also stressed the need to promote the cultivation of Kiwi, Grapes and Pomegranates in Jammu and Kashmir. Currently, these fruits are produced in very limited quantities, and there is an acute shortage in the region. The growers requested the government to allocate funds in the upcoming budget for the development of Kiwi, Grape and Pomegranate orchards to help diversify horticulture in the valley.
The association said the horticulture industry is the backbone of Jammu and Kashmir’s economy and requires strong policy support to sustain and grow. They expressed hope that the Union Budget 2025-26 will address their concerns and ensure a stable and profitable future for the region’s fruit growers—(KNO)