
Dry fruits industry seeks lower import duty in budget

Summary
- India imported dry fruits worth $2.85 billion in 2023, making it the world's largest importer of dry fruits.
New Delhi: India’s dry fruits industry lobby has urged the government to lower tariffs on walnut imports, cut goods and services tax (GST) for the sector and introduce production-linked incentives (PLI) in the upcoming Union Budget.
GST and import tariffs on dry fruits are higher than other food commodities.
“In our pre-budget proposals, we have requested the government for subsidies and taxation benefits for the sector, including rationalization of tariffs," Gunjan V Jain, president of the Nuts and Dry Fruits Council of India (NDFC) said on Wednesday. “Some of the products like walnuts are heavily taxed, but sadly the Indian production is just 20% of India's needs."
Also Read | India imported dry fruits worth $2.85 billion in 2023, making it the world's largest importer of dry fruits
Tariffs are making that product more expensive to the final consumer, he said, suggesting a walnut import duty at ₹100 per kg against current tariff of 100% on total invoice. For almonds, the duty is ₹35 per kg.
“Rationalization of duties, GST reduction to 5% from 12%-18% (considering it a health product), production-linked incentives, better infrastructure and more funds for research and development for the industry are something that we are seeking from the government," Jain said, after announcing the second edition of dry fruits exhibition, MEWA India 2025, scheduled for 12-14 February in Mumbai.
Also Read | Budget 2025 wishlist | Parity between debt and equity taxation
To be sure, GST changes are out of the ambit of the Union Budget and are announced after approval from the GST Council, which includes representatives of state governments as members.
World's largest importer
India imported dry fruits worth $2.85 billion in 2023, making it the world's largest importer of dry fruits. The country meets 80% of its consumption from nations including the US, Turkey, Afghanistan, Chile and Italy. The domestic demand for walnut is met through supplies from Chile and the US. Almonds and walnuts are the top-selling dry fruits in India.
With a share of 90%, Jammu and Kashmir primarily produces walnut in India.
NDFC treasurer Yash Gawdi said despite multi-fold growth in dry fruits demand, domestic production hasn't kept pace.
Also Read | Budget 2025 | Tax breaks to spur spending, boost economy?
“While dry fruits offer better returns compared to other crops, challenges include small land holdings, infrastructure gaps, lower yields and long gestation periods," Gawdi said. “To increase walnut production in India and reduce import dependency, we, with the support of a Chilean industry body for technology transfer and knowledge sharing, are conducting walnut plantation drives in Kashmir, Himachal Pradesh, and Uttarakhand, targetting 200,000 trees in two years."
The council expects the dry fruits market to reach $12 billion by 2029, growing at a compound annual growth rate of 18%, on the back of rising consumption. The market is valued at around $7.5 billion at a retail level, with an annual growth rate of about 15%.
Consumption of pistachios has grown from 9,000 tonnes per year to 35,000 tonnes in four years, while that of walnuts has risen from 18,000 tonnes to 90,000 tonnes in the last seven years, NDFC said.