What are the main concerns of Indian apple growers regarding the India-US trade deal?

Indian apple growers are concerned that the trade deal could lead to weakened price protection and a significant increase in imported apples, negatively impacting domestic prices and farmer incomes.

How has the Indian government attempted to protect domestic apple farmers amidst trade agreements?

The government has reduced import duties on apples from some countries and simultaneously increased the Minimum Import Price (MIP) from Rs 60 to Rs 80 per kg to act as a non-tariff barrier.

What is the estimated annual demand and domestic production of apples in India?

India has an annual apple demand of approximately 2.5 million tonnes, with domestic production estimated at 2-2.1 million tonnes, leaving a gap of 0.4-0.5 million tonnes met through imports.

Home / Business and Economy / Apple Growers Fear Trade Deal Impact

Apple Growers Fear Trade Deal Impact

11 Feb

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Summary

Domestic apple growers fear trade deal will lower prices.
Import duties reduced, minimum import price raised.
Concerns over cheaper imports from US and other nations.

Apple growers in Jammu & Kashmir and Himachal Pradesh are expressing significant apprehension regarding the potential repercussions of the proposed India-US trade deal. Concerns center on the possibility of weakened price protection and a substantial rise in imported apples, threatening the livelihoods of domestic farmers.

Recent reductions in import duties on apples from various supplying nations, coupled with the ongoing trade agreement discussions with the US, have amplified these worries. While the government asserts that the interim pact includes safeguards and quota-based concessions for US apples, growers fear a shift in import dynamics.

Previously, apples faced a 50% import duty. Now, duties on imports from New Zealand have been cut to 25%, and from the EU to 20%. The anticipated cap for US apples is also around 25%. Concurrently, the Minimum Import Price (MIP) has been raised from Rs 60 per kg to Rs 80 per kg to act as a non-tariff barrier.