Sep 14, 2023

Indian farmers protest U.S. apple tariff cuts

In Kashmir, growers protested India’s decision to cut import tax on U.S. apples.

Claiming cheaper U.S. apples will harm Kashmir growers, apple farmers and political activists in protested on Sept. 13 against their government’s decision to remove an additional 20% duty on U.S. apples.

In 2022-23, India imported 4,500 tons of apples from the U.S., considerably down from a high of nearly 128,000 tons in 2018-19, according to Reuters and BBC reports.

In 2019, India slapped an additional 20% customs duty on U.S. apples. The tariff was in addition to an existing 50% duty. It was in retaliation against the U.S. increasing tariffs on Indian steel and aluminum products, according to the report.

“We appeal to the government to reconsider the decision,” Bashir Ahmad, president of the Kashmir Valley Fruit Growers and Dealers Union, said at a rally of dozens of protesters, according to Reuters.

Reducing the tax will jeopardize the livelihoods of more than 3 million people who depend on Kashmir’s $1.2 billion apple industry, the leader told Reuters.

In fiscal year 2021-22, the Himalayan territory of Kashmir produced 1.7 million tons of apples, constituting two-thirds of India’s exports, according to government data reported by Reuters.

A commerce minister said the government only ended the additional duty and that the 50% tariff and a minimum import price of 50 rupees per kilogram would remain, according to the report.

The tariff reduction “will not result in any negative impact” on domestic apple producers, but will increase competition and ensure better quality for consumers, the government said, according to Reuters.

U.S. apples will “compete on the same level-playing field as all other countries”, the government added in the report.

India also imports apples from Turkey, Iran, Chile, Italy and New Zealand, according to Reuters.