The central government issued an official statement on Tuesday regarding its decision to relax customs duties on imported US apples, walnuts, and almonds and claimed that the move would not adversely affect local growers.
“MFN (Most Favoured Nation) duty of 50 per cent and 100 per cent continues to be applicable on US apples and walnuts as only an additional 20 per cent duty is removed. MFN rate Rs 100 per kg continues to be applicable on US almonds as only the additional MFN rate Rs 20 per kg is removed,” the Ministry of Commerce and Industry stated in an official statement.
“Removal of additional retaliatory duties and additional rate for import of US apples, walnuts and almonds will not result in any negative impact on domestic producers, apples from the US to compete on level playing field with other countries” they added.
This clarification came after Congress leader Priyanka Gandhi Vadra criticized the government’s decision, accusing it of aiding American apple growers at the expense of local ones.
“This will make the import of American apples easy, and they will be sold more readily. Prices for Apple procurement in Shimla have been reduced by prominent industrialists. When local apple growers are already suffering, the question arises: Who should receive assistance, the farmers here or those in the US?” she questioned, as per ANI.
Former Chief Minister of Jammu and Kashmir and National Conference president Farooq Abdullah also raised the issue in an interaction with the press. Expressing apprehensions over the potential adverse impact on the local economy and agricultural sector, Abdullah said that the decision will also affect Himachal Pradesh and Uttarakhand besides Jammu and Kashmir.
Also read: ‘Modi government has learnt from Congress, Gandhi family’: Robert Vadra on G20 success
“To appease the US, they want to finish the local growers. I appeal to the Govt of India to not take a step that would increase the poverty that is already here and we get stuck in another crisis… If they don’t make it easy for the people, we will take to the street and protest,” Abdullah said.
The Ministry of Commerce and Industry stated that with the decision to resolve six outstanding World Trade Organisation (WTO) disputes between the US and India through a mutually agreed solution in June 2023, India has withdrawn additional duties on eight products, including apples, walnuts and almonds.
This measure will not have any negative impact on domestic apple, walnut and almond producers. Rather, it will result in competition in the premium market segment of apples, walnuts and almonds, thereby ensuring better quality at competitive prices for our Indian consumers. Thus, US apples, walnuts and almonds would compete on the same level playing field as all other countries.
Union Commerce Minister Piyush Goyal stated, ‘India and the US decided to remove the additional duties on US apples and walnuts as both countries eliminated tariffs on their respective products. They (the US) removed the additional duties on Indian products, and India also withdrew retaliatory tariffs on US products, including apples and walnuts.’
The 20 per cent additional duties on US apples, walnuts, and almonds were initially imposed in 2019 in response to the US’s decision to increase tariffs on certain Indian steel and aluminium products. The government asserted that after import duties were imposed on US apples, New Zealand had emerged as a prominent apple exporter to India.
The removal of additional duties is expected to ensure fair competition among countries exporting these products to India, as stated by the government. To safeguard the Indian market from the influx of low-quality apples from the US and other countries, the government imposed a minimum import price (MIP) of Rs 50 per kg for apples from all countries except Bhutan.
(With inputs from PTI)