The nuts and dry fruits industry is advocating for a reduction in import duty on walnuts ahead of Prime Minister Narendra Modi’s visit to the US next week. Currently, imported walnuts are subject to a 100% duty based on value, but industry representatives are urging the government to shift to a per-kilogram duty structure, proposing a rate of ₹125 per kg.
Gunjan Jain, president of the Nuts and Dry Fruits Council, emphasized that a revised duty structure would benefit both Kashmir’s walnut farmers and India-US trade relations. Kashmir produces 98% of India’s walnuts, with the remaining supply coming from Himachal Pradesh, Uttarakhand, and Arunachal Pradesh.
India, once a major walnut exporter, now relies on imports for over 70% of its domestic demand, as consumption has surged fivefold in the past seven years. The industry argues that the current ad valorem duty structure has led to issues like under-invoicing, as duty is calculated based on invoice value rather than product quantity. Implementing a fixed per-kilogram duty, similar to the almond sector, is expected to reduce malpractices and ensure fair taxation.
Ravindra Mehta, director of the International Fruits and Nuts Organization, stated that duty rationalization would not diminish government revenue from walnut imports. The Indian government initially raised walnut import duties from 30% to 100% in 2016-17 to protect domestic farmers and imposed an additional 20% retaliatory duty on US-origin walnuts in 2019. This additional tariff was removed in September 2023.
With rising demand and ongoing trade discussions, the industry remains hopeful for a policy revision before PM Modi’s crucial diplomatic visit.