US Apples Re-enter Indian Market, Import Jumps 40 Times In 3 Months

With the removal of ‘retaliatory import duty’ on US apples, India has witnessed a surge in the import of American apples, with 40-fold increase over the past three months. During the 2017-18 period, US apple imports reached a record high of over 7 million boxes but experienced a significant decline to just 50,000 boxes in the 2022–23 season (September–August).

Sumit Saran, the country representative of the Washington Apple Commission, expressed hope in regaining market share. He also highlighted that apart from major cities, there has been notable sales growth in tier I and tier II cities.

Attributing the previous decline of Washington apples in the Indian market, Saran said, “Washington apples had somewhat exited the Indian market due to a "retaliatory tariff" imposing an additional 20 per cent on top of the basic import duty of 50 per cent. This tariff was implemented in 2019 in response to Section 232, reflecting the US government's higher import tax on Indian steel and aluminum. Although India announced the withdrawal of the additional duty on US apples in June, the official notification was issued on September 6.

Jump In Import

Highlighting the adverse impact of the 70 per cent duty on trade competitiveness, Saran emphasized that this duty placed Washington apples at a disadvantage compared to other origins that were subject to a 50 per cent duty. The removal of this additional duty has spurred a substantial increase in imports, with 440,000 boxes (20 kg each) imported between September 1 and November 30, compared to only about 10,000 boxes during the same period last year.

“In the entire 2022-23 season (September-August), India imported 50,000 boxes of apples from the US. This was a drop from the previous annual imports of approximately 5 million boxes before the imposition of the additional duty,” Saran said.

No Threat To Domestic Production

Addressing concerns from domestic apple growers about the potential impact on market share due to the reintroduction of American apples, Saran explained, “The promotional efforts are strategically timed, with promotions beginning after the domestic apple production is exhausted by January, allowing the US apples to enter the market from February onwards. The primary sales period for US apples in India typically extends until July.”

Todd Fryhover, President, Washington Apple Commission said, "India has been a very important market for Washington Apples. Supplies to India were greatly disturbed in 2019 due certain tariffs issues. We are glad that the issues have now been resolved. Washington Apple industry will once again be on equal footing with competitors in the Indian market with Indian government lifting the 20 per cent retaliatory tariffs levied on US apple and other agricultural imports. India has been among the top three markets for Washington apples and is now destined for further growth."

The concern over the decline in apple exports to India is notable for the US, given that in 2017, India became the second-largest global export destination for American apples. In the domestic market, the US held a substantial 53 per cent share in the imported apple segment.

The shift in trade dynamics has broader implications, as total apple imports by India decreased to 3.74 lakh tonnes (lt) in 2022-23 from 4.59 lt in 2021-22, according to official data. In the 2017-18 period, apple imports stood at 2.58 lt.