No negative impact on domestic producers: Govt on lowering of duty on US apples, walnuts

Amid the Opposition criticism over the lowering of import duty on US apples and walnuts, the government on Tuesday issued a statement saying that the move will not result in any negative impact on domestic producers. In the statement released on Tuesday, the Ministry explained that the decision to lower import duties came in the wake of resolving six outstanding World Trade Organization (WTO) disputes between the United States and India through Mutually Agreed Solutions in June 2023. As a result, India has withdrawn additional duties on eight US-origin products, including apples, walnuts, and almonds.

The Ministry clarified that these additional duties, which were set at 20% each on apples and walnuts and Rs 20 per kg on almonds, were initially imposed in 2019 as a retaliatory measure against the US's "protectionist measure of increasing tariffs" on certain steel and aluminium products.

"The withdrawal of these additional duties on US-origin products aligns with the US's commitment to provide market access for steel and aluminium products under the exclusion process," the Ministry stated. Importantly, this move does not affect the Most Favored Nation (MFN) duty rates, which continue to apply at 50%, 100%, and Rs 100 per kg for apples, walnuts, and almonds, respectively, on all imported products, including those of US origin, the Ministry added.

No negative impact on domestic producers: Govt on lowering of duty on US apples

The Ministry also highlighted a recent amendment in import policy for apples under ITC (HS) 08081000, dated May 8, 2023. This amendment introduced a Minimum Import Price (MIP) of Rs 50 per kg for apple imports from all countries except Bhutan. "Therefore, this MIP will also apply to apples from the US and other countries (excluding Bhutan). This measure would protect against the dumping of low-quality apples and from any predatory pricing in the Indian market," the statement read.

The Ministry asserted that these measures would not harm domestic apple, walnut, and almond producers. Instead, they are expected to foster competition in the premium market segment, ensuring better quality products at competitive prices for Indian consumers. This move will level the playing field for US apples, walnuts, and almonds, allowing them to compete with products from other countries.

In recent years, countries such as Turkey, Chile, New Zealand, and Italy have taken over the US's share in the Indian import market segment for these products. For example, Turkey, Italy, Chile, Iran, and New Zealand emerged as prominent apple exporters to India. In the case of walnuts, imports increased from US$ 35.11 million in FY 2018-19 to US$ 53.95 million in FY 2022-23, with Chile and the UAE becoming the largest exporters to India.

Therefore, the removal of additional duties will now ensure fair competition among the countries which are exporting these products to India, the Ministry added.