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

The import will be at an MIP of Rs 80 per kg; basmati rice exporters disappointed due to no special access

The Centre on Wednesday sought to downplay fears of a surge in apple imports from the EU following the Free Trade Agreement (FTA) announced a day earlier, with government officials clarifying that only around 50,000 tonnes of apples will come from the EU at a 20 per cent duty along with a minimum import price (MIP) of Rs 80 per kg.

 

This means apples from the European Union 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, as per government sources.

 

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

 

It is this quota that will now come at a lower duty, and not more, the government clarified. India presently imposes a duty of 50 per cent on imported apples.

 

“The preferential access through a quota of around 50,000 tonnes has been carefully offered in line with the EU’s current imports to India. These imports are expected to be largely at the cost of existing imports and may replace some current sources without significantly increasing overall apple imports,” official sources clarified in a presentation on Tuesday.

 

A few days ago, thousands of apple growers in Himachal Pradesh, one of the leading apple-growing regions in the country, gathered at the state Assembly protesting against the possibility of a deluge of cheap apples from the EU and New Zealand following the FTAs.

 

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

 

Meanwhile, the trade deal once again appears to have failed to enthuse India’s basmati rice exporters, who were expecting some form of quota for Indian white rice, 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 that were exempted from import duties in 2004.

 

Of these eight varieties, only the PUSA Basmati One variety has benefited from the duty concessions. India has over 35 registered basmati rice varieties, including the mass-selling PUSA Basmati 1121 variety.

 

“The government should have negotiated a quota of 125,000–130,000 tonnes of white rice with the EU at lower duties or otherwise. There is not much benefit for rice exporters,” a senior trade representative said.

 

The holding of GI negotiations also pushes matters into 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 and tobacco.