Government to Review Protection for Homegrown Apples Amid Trade Tensions

Strategic Insights -

Commerce and industry minister Piyush Goyal has announced that the government will review the protection for homegrown apples, striking a balance between the interests of growers and the needs of consumers. This move comes amid demands from the US to lower tariffs on apples and other farm goods as part of the early tranche of a bilateral trade deal. India has expressed its reluctance to lower import duty on agricultural products while controlling the entry of genetically modified maize and soybean.

Key Takeaways:

  • The government has prescribed a minimum import price of Rs 50 a kg and a 25% import duty, translating into a protection of around Rs 75 a kg for homegrown apples.
  • India imports 4.5-5 lakh tonne of apple, with Turkiye being among the largest sources, and the US is seeking to topple Turkiye by seeking preferential duty access.
  • Minister Piyush Goyal argued that a sharp increase in protection will raise retail prices further, making them unattractive to consumers and hurting overall demand.
  • The government aims to balance the interests of producers and consumers, ensuring the price of Kashmir apples is affordable for the country.
  • The Modi government has prioritized the country's interests while asserting that trade liberalisation cannot be a one-way street.
  • Both countries need to open markets as part of trade deals, with a focus on achieving a mutually beneficial agreement.

Statistics:

  • Minimum import price of Rs 50 a kg for apples
  • 25% import duty for apples
  • Protection of around Rs 75 a kg for homegrown apples
  • 4.5-5 lakh tonne of apple imported by India
  • Turkiye is among the largest sources of apple imports for India
  • US seeks preferential duty access to topple Turkiye's apple exports

Sources:

  • [Minister Comments at Trade and Industry Meeting]
  • [US seeks preferential duty access for apple exports]
  • [India's reluctance to lower import duty on agricultural products]
  • [Modi government prioritizes country's interests]
  • [Trade liberalisation cannot be a one-way street]
  • [Turkiye among largest sources of apple imports for India]