Washington State Apple Industry Deeply Worried As India Hike Duties On Fruit
Finally, after a long delay on Sunday, India imposed the tariff on the Washington State’s apple fruit, and this has landed the states apple industry in big trouble. Washington’s apple industries are not content with the decision of the Indian government and worried a lot over the hike in duties. It will be very difficult to sell Apple products to different markets when ‘you lose a reliable and established market.’ India used to import apples in large quantities from Washington State.
Indian government hiked customs duties on 28 products of the United States, namely, pulses, almond, walnut, and apple. This hike was because earlier, Washington State imposed higher tariffs on Indian products such as aluminum and steel. This move of the Indian government is considered as a response to the Washington State decision.
In June 2018, India created a record by importing best quality 2017 apple crops of Washington State. Washington State exported 7.8 million 40–pound boxes of 2017 apple crop, Yakima Herald revealed.
Yakima Herald report also said India could overtake Canada as ‘Washington’s No. 2 export market’ by importing 8 million boxes by the end of the season. Mexico is currently ranked as Washington’s No.1 export market.
India imposed a 20 percent retaliatory tariff on apples and thus making the total duty to 70 percent, due to this apple industry believes the export will even a slowdown in the future, the report stated.
India imported only a few quantities of fine 2018 apple corps this year. As on June 15, 2019, Washington State exported 2.6 million boxes to India.
Washington State alone exports 30 percent of its fine quality apple crop to India, the report mentioned.
Meanwhile, the US President Donald Trump is expected to meet Indian Prime Minister, Narendra Modi at the G20 summit in the coming week, in Osaka, Japan.
Northwest Horticultural Council’s President, Mark Powers stated, China could have been the next target if China had not involved in trade conflict with the US.
Powers added, if the apple industry fails to find other export markets, then those apples might be sold in the domestic market, and apple growers might be discouraged with prices.
Powers later said:
“When you lose a reliable and established market, it’s very hard to force that product to other markets.”
Washington Apple Commission, Spokeswoman Tori Lynn informed, the record break shipments of fine quality 2017 Washington apple crop to India was because the government banned importing apples from China.
She further said tariff imposition has significantly disturbed Washington apple exports to the Indian market in 2019 this has created ‘some waves in the market.’
Red Delicious, the most popular type of apple once exported 90 percent of apples to India in 2018, Power mentioned.
In 1999, the Washington State apple industry stated exporting apples to India but still India holds a high tariff rate, 50 percent for the member of the World Trade Organization (WTO) that export apples to the nation.
Mark Powers a week ago, held talks with the President Trumps’ administration and discussed various important issues in Washington DC.