Srinagar, Dec. 24 -- Mohammad Akbar Dar, a seasoned apple grower, expanded his business after the growth of cold storage facilities in Kashmir.

This year, he is worried. The India-New Zealand Free Trade Agreement has proposed to reduce the import tax on apples.

"We are certainly going to face losses. The reduction of tax for imported apples means death to the local industry. Kashmir is the biggest apple-producing state and will suffer because of this move, " he said.

Growers and dealers fear the move could flood the Indian market with cheaper imported apples just as Kashmir's cold-stored produce begins to arrive on shelves.

Under the agreement, New Zealand will receive limited preferential access to the Indian apple market through a t...