The Indian government announced on Tuesday that it has eliminated the additional duty on imported apples and walnuts from the US. This decision comes after the settlement of trade disputes with the US. The 20% additional duty on apples and walnuts, which had been in place since 2019, has now been removed. However, the customs duty of 50% for apples and 100% for walnuts still exists to safeguard the interests of domestic producers. Commerce and industry minister Piyush Goyal assured that the customs duty has not been reduced, clarifying that only the additional duty has been done away with.
In May, the directorate general of foreign trade (DGFT) had set a Minimum Import Price of Rs 50 per kg for imported apples, except those coming from Bhutan, to prevent the entry of apples below the notified price. This measure helps block the influx of cheap imports and protects domestic producers. Goyal also highlighted the importance of sanitary and phytosanitary standards, which establish rules for food safety and plant health. These standards ensure that only apples that comply with the specifications can be imported into India.
The removal of the additional duties on US apples and walnuts will lead to increased competition in the high-end segment. Washington apples, the main variety imported from the US, are usually priced in the higher range. With the elimination of additional duties, consumers in India can expect better deals and more options in this premium segment.
The decision to reduce tariffs on American apples and walnuts has faced criticism from opposition parties. However, the government maintains that these measures are necessary to promote fair trade and benefit consumers in the country. Minister Goyal stated that the removal of additional duties will not negatively impact domestic producers. Instead, it will foster healthy competition and improve consumer choices.
Overall, this move by the Indian government aligns with its efforts to enhance trade relations with the US and create a favorable environment for importers and consumers. The elimination of additional duties on US apples and walnuts is expected to contribute to the growth of bilateral trade between the two countries.
