Explained: India’s apple quota to US and why Piyush Goyal says growers won’t be hurt

As concerns grow in hill states over apple and tree nut imports under the India–US trade framework, Commerce Minister Piyush Goyal has explained the government’s case: India has not “opened up” the apple market, and the current structure protects domestic growers through quotas, minimum import prices and duties.

Goyal responded to worries that foreign fruit could undermine farmers in states such as Himachal Pradesh and Jammu and Kashmir.

“We are not surplus in apples,” the commerce minister said while speaking to news agency ANI. “The demand for apples is more than 25-26 lakh tons. We produce about 20-21 lakh tons. As we speak, we import 5.5 lakh tons of apples every year. And a large quantity of that comes from the United States of America. We have not opened up apples. We have given them (US) a quota on apples, which is less than the current imports of apples from the USA.”

The minister stressed that the protection structure remains intact. “Today, Apple has a minimum import price of Rs 50, and there’s a 50% duty, which adds Rs 25. So, Rs 75 is the base or the floor below which goods don’t come into the country. So in some sense that’s the protection that the apple farmers also get that nobody can dump material and make it so cheap that apples don’t get a fair value.”

Even within the US quota, he said, the entry price remains high. But even in the quota India has given to the US, the minimum import price is Rs 80, the minister said. “There’s a duty of Rs 20. So the landed price of that will be Rs 100. It’s not in competition with our farmers, not hurting the apple industry over here. And the import is limited to a quota, which is less than what they are exporting even today to India. And certainly only a portion of the 5 lakh tons of apples that we are importing into India.”

Tree nuts and existing imports

On tree nuts, Goyal said the agreement does not mark a new opening but formalises an existing trade pattern driven by supply shortages. India, he argued, has long relied on imports to meet domestic demand.

“Similarly, tree nuts. We have been importing tree nuts for years and years. You may remember in your childhood having had California almonds. Pistachios are imported into the country. We import walnuts in India. As we speak and for years from the time the Congress was in power, we have been importing it. There is a shortage of these products. We continue to import. There’s not enough land in the hill states where this production can be expanded.”

India imports roughly six lakh tonnes of apples each year to bridge the gap between domestic production and demand. While a portion comes from the United States, the bulk is sourced from countries such as Iran (25.7 per cent), Turkiye (22.5 per cent) and Afghanistan (around 8 per cent), with the European Union accounting for 11.3 per cent of shipments.

Still, opposition parties in key horticulture states have questioned whether further tariff adjustments could weaken local growers.

The Peoples Democratic Party (PDP) warned that Jammu and Kashmir’s apple and walnut farmers could suffer if imports become cheaper. “They have not thought of the impact of the India-US trade deal on the horticulture sector of Jammu and Kashmir,” PDP’s Mohammad Iqbal Trumboo said. “There will be zero tariff on agriculture products imported from the US. What will happen to the apples and walnuts produced in Jammu and Kashmir?”

In Himachal Pradesh, Chief Minister Sukhvinder Singh Sukhu raised similar concerns, saying reduced duties under various free trade agreements pose risks to apple-growing regions. “This is a big issue. Under free trade agreements signed by the Union government with various countries, import duty on apples has been drastically reduced. This will have a negative impact on Himachal Pradesh’s apple farming economy,” Sukhu said.

‘Calibrated opening’ and new markets

Goyal said that in the agreement, sensitive sectors were kept outside the framework, while shortages are addressed through limited openings and technology tie-ups. “We are talking of technology collaborations to help our farmers increase their productivity, for which we are working with our farmers, our trading partners. We have talked to New Zealand to help them bring their farmers to India and technology to India to help our say kiwi growers increase productivity. When I saw the kiwi farms there, I was very impressed. I said I want to see that happen in India. And then it’s a part of our FTA to get that technology and their farmers.”

He stressed that the government had drawn clear lines and kept every item of sensitivity out of the agreement. “What we’ve opened is items where we have a shortage. Again, calibrated opening and I see absolutely no harm to our farmers. I’m happy to meet any farm delegations or any persons who may have any misgivings on this. I have an open-door policy on this.”