Ziraat Times Team Report
Srinagar: The central government is contemplating reducing or eliminating import duties on American apples, walnuts, almonds, and cranberries, a report in the Economic Times published on March 7, 2025 said.
This initiative aims to strengthen trade relations with the United States, with both nations targeting $500 billion in bilateral trade by 2030, the report said, adding that the ongoing negotiations in Washington are expected to culminate in a bilateral trade agreement by the end of the year.
Historically, India imposed additional tariffs on certain U.S. agricultural products in 2019 as a countermeasure to U.S. tariffs on Indian steel and aluminum. These included a 20% duty on apples, which was subsequently removed in September 2023, reverting the tariff to the standard 50%. Similarly, duties on walnuts and almonds were also reduced.
The potential further reduction or elimination of these duties has elicited concerns among apple growers in Kashmir and Himachal Pradesh. Farmers in these regions fear that cheaper American apples could flood the Indian market, undermining local produce. Several apple traders have expressed apprehension that reduced customs duties would make U.S. apples more affordable, rendering it challenging for apples from Kashmir, Himachal, and Uttarakhand to compete. They highlight that growers might struggle to recover costs, leading to significant financial losses.
Conversely, government officials have downplayed these concerns. Following the removal of the 20% retaliatory duty, Commerce and Industry Minister Piyush Goyal asserted that the impact on domestic farmers would be negligible, as the standard import duty of 50% remained in effect. He emphasized that the decision was part of broader trade negotiations aimed at securing favorable terms for Indian exports.
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