Grape Growers in Distress: Unfavorable Import Duties Impact Indian Exports to Bangladesh Nashik's Grape Community Faces Setback as Import Duties Skyrocket

Grape Farmers Air Grievances Over Import Duty Spike

In Nashik, the heartland of India’s grape production, farmers are expressing deep discontent with the central government’s inability to negotiate a reduction in Bangladesh’s heightened import duties on grapes. This season witnessed a sharp increase in duty. It went from approximately $0,78/kg to $1,25/kg, adversely affecting the grape export market during the crucial months from December to April.

The Economic Impact on Local Farmers

The Maharashtra Rajya Draksha Bagayatdar Sangh (MRDBS), representing the grape farmers, reports a significant downturn in profits, with farmers receiving $0,24-$0,30 less per kilogram due to the new duty structure. This financial strain comes at a time when India’s grape exports, particularly those from Nashik which accounts for 80% of the country’s total, are crucial for the livelihood of many.

Nashik’s Dominance in Grape Exports Threatened

Nashik’s preeminence in grape exports is now under threat, with a reported 20% drop in shipments to Bangladesh, traditionally a major buyer of around 60,000 metric tonnes of Nashik grapes each season. This decline not only affects the regional economy but also disrupts the established trade dynamics between India and Bangladesh.

Call for Government Intervention

Kailas Bhosle, the vice president of MRDBS, has strongly emphasized the urgent need for proactive efforts from the Centre. Specifically, he advocates for engaging with the Bangladeshi government to reconsider the import duty. This plea is not just about numbers. It underscores the broader implications of fiscal policies on cross-border trade relations and the local agricultural economy.

Government Response and Forward-Looking Statements

In response, Union junior minister Bharti Pawar addressed these concerns. She pointed out that communications have already been initiated by Union commerce minister Piyush Goyal with the Bangladeshi government, signaling attempts to ameliorate the situation. However, it’s important to note that the ball is now in Bangladesh’s court, leaving the issue hanging in the balance for the moment.

The Road Ahead for Grape Farmers

As Nashik’s grape farmers find themselves navigating these turbulent waters, the outcome of these diplomatic endeavors remains to be seen. Consequently, the community’s resilience is under a microscope. There is a lingering hope for a resolution that leans in their favor. Highlighting the critical role of international cooperation in the sphere of agricultural trade.

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