A rotten deal

The impending threat of further tariff reductions on Washington apples has sent shock waves through the country’s apple-growing regions. With import duties already slashed from 70 per cent to 50 per cent in 2023, orchardists fear another cut would flood the market with cheap, high-quality American apples, devastating domestic growers. The numbers tell a sobering story. When tariffs were hiked in 2018, US apple imports plummeted from 1.28 lakh metric tonnes to just 4,486 metric tonnes by 2022-23. But after the duty was reduced, imports surged nearly 20 times. Any further relaxation would make Washington apples as affordable — or even cheaper — than premium domestic varieties, threatening the livelihoods of around seven lakh farming families.

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India’s agricultural tariffs are a key sticking point in US trade negotiations. While it imposes high duties — 45 per cent on soya beans, 50 per cent on maize, 5 per cent on cotton and a steep 150 per cent on processed food — the US wants lower barriers for its farm exports. However, trade cannot be a one-way street. If India must make concessions, it should secure reciprocal market access for its produce and processed foods.

Apple growers already face stiff competition from cheap Iranian imports and struggle with high production costs due to the rugged Himalayan terrain which makes mechanisation impossible. In contrast, American apples benefit from highly mechanised farming and large-scale subsidies. This imbalance makes India’s apple industry extremely vulnerable to unregulated imports. Any tariff cut without protective measures would cripple an industry already on the edge. If ‘Vocal for Local’ is to be more than a slogan, India must resist pressure to lower import duties blindly. It should negotiate smartly — protecting vulnerable sectors while expanding export opportunities.