Madras HC stays DGFT's notification restricting apple imports to Nhava Sheva

Chennai-based importers allege DGFT's move arbitrary, violates Constitutional guarantee

The Madras High Court has stayed a government order that restricted import of apples to the Jawaharlal Nehru Port, commonly known as Nhava Sheva, in Maharashtra. The order was issued on a petition filed by a batch of eight Chennai-based importers who were unable to take delivery of apples they had contracted for.

Eight importers, including from the South Indian Fresh Fruit Importers Association, challenged the Directorate General of Foreign Trade's notification number 21/2015, dated September 14, 2015, which revised the policy to restrict import of fresh apples through Nhava Sheva only. 

They argued that the notification of DGFT, at a time when the imports has been left as free is arbitrary and violates the constitutional guarantee under Article 14 of the Constitution of India, as importers outside of Maharashtra are at a clear disadvantage .

"Incidentally, some importers in Cochin Port had moved Hon'ble High Court of Kerala challenging the notification wherein the stay of the notification was granted and pending. Taking note of the said position and also that of an earlier writ petition in the Hon'ble High Court of Madras through Justice M M Sundaresh granted stay of the notification today," said B Satish Sundar, who was representing the importers.

"The main ports of import in the country are Chennai Seaport through which more than 50% of the imports in the country take place. Upto 47% of the imports are routed through Nhava Sheva Port and the balance 3%, are routed through the ports / ICDs in Kolkata, Cochin, Krishnapattnam, Kattupalli, Tuticorin, Delhi Air Cargo etc," said one of the petitions.

The main apple growing states are in north and east India, including Jammu and Kashmir, Himachal Pradesh, Uttarakhand and Arunachal Pradesh. However, cultivation is negligible owing to extreme weather conditions, the importers said by way of explaining the imports. 

They submitted that the availability of locally grown apples  has become difficuly and unprofitable due to transportation costs from Himachal Pradesh and J&K or from wholesale markets there and in Delhi. They also pointed out that apples grown in India are of much inferior quality and subject to speedy decay and deterioration due to absence of cold chain management.

Combined with round-the-year non-availability of apples grown in India, import of fresh apples has become a necessity, they added.