India’s decision to remove retaliatory duties on eight US products, including apples, as part of the deal for restoration of market access for Indian steel and aluminium in the US, will not hurt domestic apple producers, the government has assured.
“The decision will not result in any negative impact on domestic apple producers and will result in competition in premium market segment ensuring better quality at better prices for consumers. After removal of this duty, the apples from the US would compete on level playing field with other countries,” per a statement issued by the Commerce & Industry Ministry.
The decision will ensure that only premium quality apples could be imported for which there exists a specific market segment and specific demand, it added.
India had imposed an additional 20 per cent import duty on US apples in 2019 in retaliation against the Trump regime’s decision to increase tariffs on certain steel and aluminium products on grounds of national security concerns
MFN duty stays
During Prime Minister Narendra Modi’s visit to the US last week, both sides decided to resolve six outstanding WTO issues which including settling the disputes on steel & aluminium and the retaliatory duties. “There is no reduction on Most Favoured Nation (MFN) duty on apples which is still applicable on all imported apples including on the US at 50 per cent,” the statement noted.
Moreover, the Minimum Import Price (MIP) of ₹50 per kg imposed by the DGFT on apples from all countries (except Butan), will also be applied on US apples. The MIP is to prevent flooding and to protect domestic growers from predatory pricing. India’s total import of apples has been stable, and in the range of $ 239 –305 million (except in 2021-22 when it was $385 million) in the last five financial years since application of these additional duties on the US apples, the release said. Import of apples from the US decreased to $5.27 million (4,486 tonne) in 2022-23 from $145 million (127,908 tonne) in 2018-19. “The market share of the US apples was taken by other countries due to imposition of additional retaliatory duty on US apples. This is reflected as the import of apples from countries other than the US increased from $160 million in FY 2018-19 to $290 million in FY 2022-23. Turkey, Italy, Chile, Iran and New Zealand are other top exporters to India of apples which took the market share of the US,” the release pointed out.
