Home
|
Sitemap
|
FAQs
|
Contact Us
Product
Country
Menu
About Agri Exchange
Introduction
Apeda Agri Exchange
The Vision
Benefits / Facilities
To Exporters
To Buyers
Product Profile
Floriculture
Floriculture
Fruits & Vegetables Seeds
Fresh fruits & Vegetables
Fresh Onion
Other Fresh Vegetables
Walnuts
Fresh Mangoes
Fresh Grapes
Other Fresh Fruits
Others (Betel Leaves & Nuts)
Processed Fruits & Vegetables
Cucumber and Gherkins (Prepd. & Presvd.)
Processed Vegetables
Mango Pulp
Processed Fruits,Juices & Nuts
Pulses
Animal Products
Buffalo Meat
Sheep/ Goat Meat
Other Meat
Processed Meat
Animal Casing
Poultry Products
Dairy Products
Natural Honey
Caseins
Albumin (Eggs & Milk)
Other Processed Foods
Groundnuts
Guar Gum
Jaggery & confectionery
Cocoa Products
Cereal Preparation
Milled Products
Alcoholic Beverages
Miscellaneous Preperations
Cereals
Basmati Rice
Non Basmati Rice
Wheat
Maize
Other Cereals
Country Profile
United Arab Emirates
Saudi Arabia
Malaysia
Bangladesh
United States
Vietnam
Kuwait
Iran
United Kingdom
Indonesia
...View more country profiles
FTA's
Analytical Report on FTAs
Tariff Concession under FTAs
Statistics
International Trade
India's Export
India's Import
Production
International Production
India Production
Market Intelligence
e-Bulletin
Global Analytical Report
India's Export Analytical Report
Comparative Report On APEDA Products
Comparative Report On Principal Commodities
Import Tariffs
Import Regulations
SPS Notifications
DGFT : Public Notice, Notifications, Circular and Trade Notice
India Food Safety & Standards
Market Reports
Foreign Trade Policy 2023
Chapter 01 - Legal Framework and Trade Facilitation
Chapter 02 - General Provisions Regarding Imports and Exports
Chapter 03 - Developing Districts as Export Hubs
Chapter 04 - Duty Exemption Remission Schemes
Chapter 05 - Export Promotion Capital Goods (EPCG) Scheme
Chapter 06 - Export Oriented Units (EOUs), Electronics Hardware Technology Parks (EHTPs), Software Technology Parks (STPs) and Bio-Technology Parks (BTPs)
Chapter 07 - Deemed Exports
Chapter 08 - Quality Complaints and Trade Disputes
Chapter 09 - Promoting Cross Border Trade in Digital Economy
Chapter 10 - Scomet: Special Chemicals, Organisms, Materials, Equipment and Technologies
Chapter 11 - Definitions
Newsletters
Latest News
Latest Newsletter
Archives
Directory
Exporters
Service Providers
Logistics
Trade Leads
Submit New lead
Buy Leads
Sell Leads
Indian Mission Login
Market News
India agrees to cut import duty to 5-10% on some processed food items.
Sep 14, 2023
India has agreed to bring down the import duty to 5-10 per cent on some fresh and processed food items as part of a larger dispute settlement between New Delhi and Washington at the World Trade Organization (WTO).
The duties will be reduced on import of frozen turkey, frozen duck, fresh/frozen/dried/processed blueberries, and cranberries. Currently, these items attract import duty of around 30-45 per cent.
'The duty reduction is on MFN (most favoured nation) basis,' government officials said. So, while the duty reduction is a result of the negotiations between India and the US, the tariff cut will be applicable to all WTO member nations, according to the WTO’s MFN principle.
The announcement was made by the United States Trade Representative (USTR), on the sidelines of the G20 Leaders’ Summit in New Delhi, after the bilateral meeting between Prime Minister Narendra Modi and US President Joe Biden on Friday.
While the product-specific import duty reduction is yet to be announced, people aware of the matter said that the finance ministry’s revenue department will notify the duty cut in less than six months. 'There’s time up to 180 days …Customs will decide the appropriate time,' a person aware of the matter told Business Standard.
The announcement came as part of the seventh trade dispute between the two nations at the WTO over poultry imports from Washington. The development came less than three months after Modi’s visit to the US in June when both countries decided to square off and close six of seven outstanding disputes at the WTO. India, in 2015, had lost a long-standing dispute over poultry imports–mainly chicken legs – from the US.
Rationale and impact
The rationale behind agreeing to the tariff cuts is that not only the dispute that India lost at various stages at the WTO is laid off, but that the US can get some market access to items that are not very popular in India, said the person cited above. 'This (tariff cut) is unlikely to hurt the domestic market. It is an exclusive market that caters to a limited segment that wants to buy international products. It will be the consumers' choice'.
For instance, India is not a major producer of blueberry and depends on import of the fruit to meet its local needs. The US, on the other hand, is the largest producer of blueberries in the world and has been trying to tap the Indian market. In the past, US-based farmers and exporters’ body US Highbush Blueberry Council had said that it had been working with importers and trade associations in India to help reduce the 30 per cent import duty.
Arpita Mukherjee, professor at the Indian Council for Research on International Economic Relations, said that import duty reduction of such products will be good for hotels, food processors, and consumers. These items at the moment are niche products and cater to high and middle-income consumers and the hospitality sector.
'Besides, the channels through which the products enter the Indian market could be through organised retail or hotel chains, and not through unorganised retail partners. As a result, despite the duty cut, the access of the product for the consumer may not substantially increase and the final price depends on retailer margins,' Mukherjee said.
'Gradually, India will have to reduce high tariff on agricultural/food items to facilitate agricultural trade, especially when the country is trying to ink more free trade agreements,' she added.
The US is India’s largest export market, with outbound exports at $78.5 billion in the financial year ended March 31, 2023. It is also the third largest import partner, after China and the United Arab Emirates, with inbound shipments amounting to $50.24 billion during the last financial year.
-- Tariff cut on some processed and fresh food items, such as turkey, blueberries, cranberries, duck
-- Import duty on such items usually hovers around 30-45 per cent
-- Tariff cut of 5-10 per cent depends on food item
-- Move is part of the larger dispute settlement between India-US at the WTO over India’s poultry import curbs, mainly of chicken legs
business-standard.com
Archive