India Implements Quota-Based Duty Concessions on US Apples While Protecting Domestic Farmers

India has introduced a quota-based duty concession on US apples under an interim trade agreement, ensuring domestic apple growers remain protected, according to Commerce and Industry Minister Piyush Goyal. The agreement imposes a minimum import price (MIP) of Rs 80 per kg and a 25% import duty on US apples. This means apples priced below Rs 100 per kg cannot be imported from the US.

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Currently, imported apples face a 50% duty with an MIP of Rs 50 per kg, effectively blocking imports priced under Rs 75 per kg. "Our apple farmers are fully protected, and there is no need to worry," Goyal assured reporters. India imports approximately six lakh tonnes of apples annually, with significant portions coming from Iran, Turkiye, Afghanistan, and the EU.

Trade Concessions and Reciprocal Tariffs

Under the interim trade pact, several Indian goods will benefit from zero reciprocal tariffs in the US. This includes certain fruits, vegetables, tea, and coffee. However, India has not extended any duty concessions on dairy products, sugar, or millets to the US. Goyal emphasized that the agreement will not negatively impact farmers, MSMEs, handicrafts, or handlooms.

India has also agreed to reduce duties on European apples to 20% under a trade pact with the EU. However, imports are capped at 50,000 tonnes annually and subject to an MIP of Rs 80 per kg to protect local farmers. The cap will increase to one lakh tonnes over ten years as part of the India-EU free trade agreement.

Cotton Imports and Production Estimates

India has opened up imports of extra-long staple cotton under a quota due to limited domestic production. "We need this cotton for our exports because we don't produce it much here," Goyal noted. The government has extended the import duty exemption on cotton until December 31, 2025.

The Cotton Association of India (CAI) has raised its cotton crop production estimate for October-September 2025-26 by 7.50 lakh bales to 317 lakh bales. This increase follows reports of higher production in Maharashtra, Telangana, and Karnataka. Total cotton supply by September 30, 2026, is expected to reach 427.59 lakh bales.

Cotton Supply and Consumption

CAI maintains its estimate for cotton imports during the 2025-26 season at 50 lakh bales while noting a decrease in exports by three lakh bales from the previous year's figure of 18 lakh bales. Total cotton consumption for the same period is projected at 305 lakh bales compared to last year's consumption of 314 lakh bales.

The textile industry in India relies heavily on stable access to high-quality cotton as it is the country's second-largest employment provider. The persistent demand-supply gap necessitates continued importation of cotton despite India's status as the world's second-largest producer of this fibre.

With inputs from PTI