Centre justifies reduction in US apple import duty under WTO rules

Srinagar, Nov 9: The Union Finance Ministry on Monday said that the import duty on apples from the United States was reduced from 70% to 50% in September 2023.
This decision was taken to resolve certain World Trade Organisation (WTO) disputes, which earlier warranted a retaliatory 20% additional duty on US apples, the centre said adding that this retaliatory duty has now been removed, aligning tariffs with the WTO-bound rate of 50%.

While adhering to international trade commitments is essential, farmers and industry experts have urged the government to explore alternative measures to protect domestic growers.
The decision has raised concerns among apple farmers in Kashmir, India’s largest apple-producing region. Farmers have long advocated for an increase in import duties to shield their produce from foreign competition. They argue that the bulk import of apples from various countries has significantly undermined the demand for Kashmiri apples, renowned for their quality and taste.
The government also admitted it has not conducted a formal assessment of the impact on domestic growers, particularly in the Kashmir Valley. This lack of evaluation has heightened anxieties among stakeholders, who warn of potential long-term economic damage to the region’s apple industry.
Experts caution that without timely intervention, the livelihoods of thousands of farmers could be at stake, jeopardizing a key economic sector in the region.
Horticulture is the mainstay of Kashmir’s economy with seven lakh families according to official figures are directly or indirectly associated with the sector. Horticulture contributes over eight percent to the Gross Domestic Product (GDP) of Jammu and Kashmir.
More than 3.38 lakh hectares of land is under the fruit cultivation in the valley. Of which 1.62 lakh hectares is under the apple cultivation.