Impact of Reduced Apple Import Duty on Domestic Farmers

Indian government has responded to a Lok Sabha query regarding the impact of the reduction in apple import duty from 70% to 50% in September 2023, particularly on imports from the United States. While the duty was initially raised as a retaliatory measure, the 20% additional duty was removed following a resolution of WTO disputes. The government has provided data indicating a rise in imports from 4,117 Lakhs in 2022-23 to 17,716 Lakhs in 2023-24. However, no assessment has been conducted on the impact of these imports on domestic apple farmers in Kashmir, and no recent representations have been received from farmers’ associations calling for a higher import duty. Importantly, the current import duty on apples is at 50%, which is aligned with India’s WTO commitments and cannot be increased beyond this rate.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
LOK SABHA
UNSTARRED QUESTION NO.2267

TO BE ANSWERED ON MONDAY, DECEMBER 09, 2024

IMPORT DUTY ON APPLES

2267. SHRI AGA SYED RUHULLAH MEHDI:

Will the Minister of FINANCE be pleased to state:

(a) whether the import of apples has increased significantly particularly from the US, after reduction in import duty from 70% to 50% in September 2023;

(b) whether the Government has conducted any assessment of the impact of increased apple imports on domestic apple farmers in the Kashmir Valley;

(c) whether the Government has received any representations from apple farmers’ associations for increase in import duty to protect the domestic producers; and

(d) whether the Government proposes to increase import duty on apples so that domestic apple farmers compete with imported apples, and if so, the details thereof?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE

(SHRI PANKAJ CHAUDHARY)

(a): Import of apples attract customs duty of 50% which is at World Trade Organisation (WTO) bound rate. 70% import duty was applicable only on imports from United States of America (USA) which was imposed as a retaliatory measure. Following resolution of some WTO disputes, the retaliatory duty of 20% on imports from USA was removed.

The data on imports of apples as per Trade Stats, DoC is as below:

(Rs. in Lakhs)

(b) No, the Department of Revenue has not conducted any such assessment.

(c) No such representation has been received in the recent past.

(d) Currently, fresh apples attract import duty at 50% which is already at World Trade Organisation bound rate of 50%, beyond which duty can not be imposed.

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