India to import 50K tonnes of EU apples at 20% duty under FTA: Govt

Seeking to downplay any fears of surge in apple imports from EU following the free trade agreement (FTA), the Centre on Wednesday clarified that only around 50,000 tonnes of apples will come from the European Union (EU) at 20 per cent duty, with a minimum import price (MIP) of Rs 80 per kg.

 

This means apples from the EU will continue to face a minimum effective landed price of Rs 96 per kg, which will preserve domestic price stability and safeguard farmer incomes, the government clarified.

 

This quantity will go up to 100,000 tonnes annually, but only over the next 10 years. India currently imposes a duty of almost 50 per cent on apple imports. India, in 2024, imported around 500,000 tonnes of apples, according to government sources.

 

Of this, around 26 per cent or around 133,447 tonnes came from Iran, while another 23 per cent- which is around 116,680 tonnes- came from Turkiye and 42,716 tonnes or 8.2 percent from Afghanistan. The EU contributed just around 56,717 tonnes or 11.3 per cent.

 

It is this quota which will now come at a lower duty and not more, the government clarified. “The preferential access through quota of around 50,000 tonnes has been carefully offered in line with EUs current imports to India. These imports are expected to be largely on the cost of existing imports and may replace some current sources without significantly increasing overall apple imports,” official sources clarified in a presentation on Wednesday.

 

Few days back, thousands of apple growers in Himachal Pradesh, one of the leading apple growing regions in the country had gathered at the state assembly protesting against chances of deluge of cheap apples from EU and New Zealand following the FTAs.

 

Officials said that on the contrary to apple imports flooding the country, Indian apples will get a zero duty access over 5-7 years in the EU market, which would open a premium segment for India’s producers. On the vexed question of stringent phytosanitary norms of EU harming smooth exports, officials clarified that Indian producers will be prepared to meet the high quality standards set by EU as non-tariff barriers.

 

Meanwhile, the trade deal once again seems to have not enthused India’s basmati rice exporters, who were expecting some sort of quota for Indian white rice, which is a growing market in the EU.

 

India exports around 290,000 tonnes of rice to the EU, which does not include the UK. Within this, there are around eight rice varieties which were exempted from import duties in 2004.

 

Of these eight varieties, PUSA Basmati One variety has benefitted from the duty concessions. India has over 35 registered basmati rice varieties, which include the mass selling PUSA Basmati 1121 varieties.

 

“The government should have negotiated a quota of 125,000-130,000 tonnes white rice with the EU at lower duties or otherwise, there is no much benefit for rice exporters,” a senior trade representative said.

 

The holding of GI negotiations also pushes things in the future. India said it has safeguarded sensitive sectors such as beef, poultry, dairy products, fish, seafood, cereals, especially rice and wheat, fruits, nuts, edible oils, tea, coffee, spices, tobacco etc.

 

EU farmers urge quick settlement of GI issues

 

A prominent group of farmers and cooperatives from the European Union (EU) has urged negotiators to act quickly on the Geographical Indications (GI) agreement with India as part of the recently-concluded free-trade agreement (FTA) in a manner that supports their value-added products and protects its quality schemes in the Indian markets. COPA and Cogeca, two organisations that represent around 22 million farmers and 22,000 agricultural cooperatives in the EU, added in a statement that effective implementation of the FTA with India must guarantee reciprocity of production standards for agri-food products coming in the EU market, to ensure fair competition and maintain consumer confidence.