New Delhi: India has agreed to offer a quota-based duty concession on apple imports from the United States under the upcoming interim trade pact, while ensuring strong safeguards for domestic apple farmers, Commerce and Industry Minister Piyush Goyal said on Saturday.
Speaking at the NDTV Profit Conclave, Goyal said the government has introduced a minimum import price (MIP) of ₹80 per kg and an import duty of 25 per cent on US apples as part of the proposed trade agreement, which is expected to be signed by mid-March.
The Minister explained that MIPs are imposed on select products such as apples to protect farmers and micro, small and medium enterprises (MSMEs) from cheaper imports. He said the government has taken multiple measures to ensure imported apples do not undercut Indian producers.
“We import substantial quantities of apples from the United States. To help our farmers, we have put a floor price. Nobody can import apples below that price. There is also an import duty, which means the landed cost becomes much higher. So our farmers effectively have protection up to around ₹100 per kg,” Goyal said.
This means apples priced below ₹100 per kg cannot be imported from the US into India under the proposed pact, providing a significant price buffer for domestic growers. Goyal added that India uses a mix of policy tools such as quotas and gradual market opening to protect sensitive sectors.
Currently, imported apples attract a 50 per cent import duty with an MIP of ₹50 per kg, which effectively prevents imports priced below ₹75 per kg.
India imports around six lakh tonnes of apples annually, with Iran supplying about 25.7 per cent of the shipments, Turkiye contributing 22.5 per cent, Afghanistan around 8 per cent, and the European Union accounting for 11.3 per cent.
Goyal noted that expanding apple cultivation area is difficult because production is concentrated in hilly regions, while consumption continues to rise due to increasing incomes and prosperity. “Demand is outpacing supply, which naturally creates shortages,” he said.
The Minister also said that several Indian exports, including agricultural products, are expected to attract zero reciprocal tariffs in the US under the interim trade pact.
India has also agreed to reduce import duty on European apples to 20 per cent under its trade agreement with the EU, but imports will be capped at 50,000 tonnes per year and subject to a minimum import price of ₹80 per kg to safeguard domestic farmers. Under the agreement, the cap will gradually increase to one lakh tonnes over 10 years.
Apple imports remain a politically sensitive issue in major apple-growing regions such as Himachal Pradesh and Jammu and Kashmir. Earlier in the day, Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu expressed concern that lower import duties under free trade agreements could hurt the state’s apple economy.
Negotiations on the India-EU free trade agreement were concluded last month, and the deal is expected to be signed and implemented later this year.