Sat Feb 07 15:58:36 UTC 2026: ### Headline: India Balances US Trade Concessions with Domestic Apple Grower Protection

The Story:
India has granted the United States a quota-based duty concession on apples under an interim trade pact. Commerce and Industry Minister Piyush Goyal stated this decision aims to protect domestic apple growers by imposing a minimum import price (MIP) of Rs 80 per kg and an import duty of 25% on US apples. This measure ensures that apples priced below Rs 100 per kg cannot be imported from the US, safeguarding Indian farmers’ interests. Simultaneously, India aims for reciprocal zero tariffs on several Indian goods, including agricultural products, in the US.

India has also agreed to lower the duty on European apples to 20% under a trade pact with the EU, with imports capped at 50,000 tonnes per year, also subject to the Rs 80 per kg MIP. This move comes after concerns raised by Himachal Pradesh’s Chief Minister regarding the impact of reduced import duties on the state’s apple farming economy.

Key Points:

  • India grants quota-based duty concession to the US on apples.
  • A minimum import price (MIP) of Rs 80 per kg is imposed on US apples.
  • An import duty of 25% is levied on US apples.
  • The aim is to protect domestic apple growers from cheaper imports.
  • India seeks reciprocal zero tariffs on some Indian goods in the US.
  • Duty on European apples is lowered to 20%, capped at 50,000 tonnes with Rs 80 per kg MIP.
  • Himachal Pradesh CM expressed concerns about the impact of reduced import duties.

Key Takeaways:

  • India is navigating a complex trade landscape, balancing international trade agreements with the protection of domestic agricultural interests.
  • Minimum Import Prices (MIPs) and import duties are key tools used to shield Indian farmers from cheaper imports.
  • The apple industry is a politically sensitive issue in key apple-growing regions like Himachal Pradesh and Jammu & Kashmir.
  • Trade agreements with the US and EU are progressing, with anticipated signings and implementation in the near future.
  • Increased income levels in India are driving demand for apples, leading to shortages despite efforts to increase domestic productivity.

Impact Analysis:

The India-US trade pact, specifically concerning apple imports, has the potential to reshape the dynamics of the Indian apple market. The imposition of the MIP and import duties is likely to keep prices of imported apples relatively high, ensuring that domestic apple growers can compete effectively.

  • Short-term: Stabilized prices for Indian apple growers and continued access to the Indian market for US apple exporters, albeit with limitations.
  • Mid-term: The success of this interim pact will influence future trade negotiations and the terms of broader trade agreements. Potential increase in domestic apple production if farmers are incentivized by stable prices.
  • Long-term: As income levels rise in India and demand for apples continues to grow, the balance between domestic production and imports will need constant re-evaluation. The MIP and import duty mechanisms might need adjustments to remain effective. The agreement to increase the EU apple imports to 1 lakh tonnes over 10 years will gradually increase foreign competition.

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