Shimla: Even as Himachal Pradesh apple orchardists have for long been demanding higher duty on imported apples to shield them from foreign competition, the ongoing tariff war with the US might have the opposite effect.
Instead of increasing the existing 50 per cent duty on American apples to 100 per cent, as demanded Himachal Pradesh apple orchardists, India may be forced to reduce it further, potentially dropping it below 50%.
This move could deal a severe financial blow to Himachal Pradesh apple orchardists, who are already struggling with rising imports and high costs of inputs.
Cheaper US apples may flood Indian markets
The speculation arises after former US President Donald Trump reiterated his call for “reciprocal tariffs” on countries, including India.
Amid trade negotiations, reports suggest that the Indian government could be forced to lower duty on American apples, almonds and walnuts.
If implemented, the decision could flood the domestic market with cheaper US apples, severely impacting apple growers in Himachal and Kashmir.
Import duty on apples cut from 70% to 50% in 2023
India had already slashed the import duty on Washington apples from 70% to 50% in November 2023, following President Joe Biden’s visit.
The immediate impact was a staggering 19-fold increase in US apple imports, which jumped from just 4,496 metric tonnes to 1.75 lakh metric tonnes. The surge created intense competition for local apple growers, leading to significant losses during the last apple season.
Historically, higher tariffs have helped limit imports. In 2019, when India raised import duties on US apples from 50% to 70% as a countermeasure to Trump’s steel tariffs, imports plummeted from 1.2 lakh metric tonnes to just 4,496 metric tonnes.
However, with new trade pressures, a further reduction in duties could cripple Himachal’s apple economy.
Apple orchardist Vinay Chauhan warns, “Lowering import duties will devastate apple growers in Himachal Pradesh. Orchardists must protest against any such move to protect their livelihoods.”
Chaman Tanta, a progressive apple grower from Dochi in Shimla district’s Jubbal tehsil, urged immediate action. “If India bows to US pressure again, Himachal apple orchardists will be ruined. Orchardists must write to Prime Minister Narendra Modi and key ministers to oppose this decision.”
Sunil Chadha