BackDonald Trump’s visit puts the spotlight back on restrictions on key US imports
India is among the top three export markets for US apples and California almondsThe US wants India to remove these tariff hikes as part of the limited trade deal that both sides are negotiating
PremiumImported American fruit and nuts are becoming particularly prominent in Indian retail stores and households as the trade promotion arms of American growers of apples, almonds, walnuts and pearsstep up efforts to sell more American produce in India.
India is among the top three export markets for US apples and California almonds. As such, the demand for such produce has remained strong in India, especially among middle-income households.
However, in June 2019, India imposed retaliatory tariffs on 28 items imported from the US, including almonds, apples and walnuts because of duty hikes by the US on steel and aluminium exports from India. Additional duty on shelled almonds was up 20%, while that on imported American apples was up 25%.
This has led to a dip in the imports of these items. India imported almonds worth $701 million in 2019, down 8.8% from a year ago. It imported apples worth $59.1 million in the same year, a 64% drop, while walnut imports fell to $14.2 million.
The US wants India to remove these tariff hikes as part of the limited trade deal that both sides are negotiating.
However, it is to be seen whether the two countries reach any conclusive trade agreements. This is particularly so as US trade representative Robert Lighthizer will not be part of Donald Trump’s delegation to India. However, commerce secretary Wilbur Ross is part of the delegation that is set to arrive on 24 February.
The visit comes at a time when trade bodies representing American fruits and nuts growers have stepped up efforts to promote the produce in India.
For the year 2018-19, the Almond Board of California budgeted $5.5 million to the India programme, “reflecting its continued commitment to this market."
American almonds have become a mainstay in India over the years especially as they are now promoted as an year-round healthy nut, said Amit Lohani, convener, Forum of Indian Food Importers. “They are reaching even the country’s smallest towns. They are picked up as shelled almonds that come into the country in bulk. Flavour-addition and packaging is done here. So, a lot of value creation happens in India," Lohani pointed out.
Volumes are large, mainly because of the demand from middle-income households, he said.
In 2017-18, India was among the top exporters for shelled American walnuts outside of the US, according to a July 2018 report of the Almond Board of California. Besides, American shelled almonds continued to be widely popular in the country’s large wholesale dry fruit markets, said Vijay Kumar Bhuta of Mumbai Dryfruit and Dates Merchants Association.
In January, the Washington Apple Commission, the promotional arm of the Washington apple industry, roped in actress Disha Patani and chef Sanjeev Kapoor as brand ambassadors. “India is a very important market for Washington Apples. The country has been the top three markets for Washington Apples globally for few years now and is destined for further growth," Todd Fryhover, president, Washington Apple Commission had said then.
Asit Ranjan Mishra contributed to this story
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