India Caps EU Apple Imports at 50,000 Tonnes to Safeguard Domestic Farmers Under New FTA

India plans to reduce the import duty on European apples to 20%, with a cap of 50,000 tonnes annually and a minimum import price of Rs 80 per kg. This measure aims to protect local farmers, according to an official. Currently, the import duty stands at 50%. The apple trade is sensitive in regions like Himachal Pradesh and Jammu and Kashmir.

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The India-EU free trade agreement outlines that the import cap will rise to 100,000 tonnes over a decade. On Tuesday, both parties announced the conclusion of negotiations, with expectations for the agreement to be signed and implemented within this year. The official stated that European apples will still face a minimum effective landed cost of around Rs 96 per kg.

Trade Agreement Impact on Domestic Market

This pricing strategy aims to maintain domestic price stability and protect local farmers' incomes while supporting the market position of Indian apples. The official assured that the FTA includes measures to safeguard domestic apple growers' interests. In 2024, India's apple imports totaled about 500,000 tonnes, with Iran contributing 25.7%, Turkiye 22.5%, and Afghanistan around 8%.

The EU accounted for 11.3% of these imports. Duty concessions are expected to shift imports away from Iran and Turkiye. These changes may replace some current sources without significantly increasing overall apple imports, as per the official's statement.

Reciprocal Benefits for Indian Apples

Under the agreement, Indian apples will also receive duty concessions in the EU market. The EU plans to reduce duties to zero over five to seven years, creating opportunities for Indian apple producers in premium segments. "We have secured market access reciprocally," said a commerce ministry official.

The official added that the concession on apples represents a balanced trade outcome that protects livelihoods, maintains price stability, and opens new opportunities for Indian apple growers.

This trade pact reflects a strategic approach to balance international trade benefits while safeguarding domestic interests. It highlights India's commitment to protecting its agricultural sector while expanding market access abroad.

With inputs from PTI