In the wake of settled trade disputes with the United States, the Indian government has decided to eliminate the 20% additional duty imposed on imported apples and walnuts. This duty has been in effect since 2019, causing concerns among domestic producers. However, the government has reassured that this move will not negatively impact local farmers, as ample safeguards, including customs duty, remain in place.
The removal of the additional duty follows negotiations that led to the settlement of trade disputes with the US. Prior to this change, apples were subject to a 50% customs duty, while walnuts faced a hefty 100% customs duty, in addition to the 20% extra duty. Commerce and Industry Minister Piyush Goyal clarified, “Customs duty has not been reduced. Only the additional duty has been done away with.”
To protect domestic interests, the Directorate General of Foreign Trade (DGFT) had previously set a minimum import price of Rs. 50 per kilogram for imported apples, excluding those from Bhutan. This measure aimed to prevent the influx of apples below the specified price, thus safeguarding local producers. Additionally, Goyal emphasized that stringent sanitary and phytosanitary standards, governing food safety and plant health, would ensure that only apples meeting the specified criteria would be permitted into India.
The removal of additional duties is expected to foster competition in the high-end segment, particularly for Washington apples, the primary variety imported from the US. This change is anticipated to benefit consumers by offering more competitive pricing and choices.
The government’s decision reflects a balanced approach to international trade, ensuring that domestic interests are safeguarded while promoting fair competition and access to high-quality imports.