India will lower the duty on European apples to 20 per cent under the trade pact, but the imports would be capped at 50,000 tonnes per year and subject to a minimum import price of Rs 80 per kg, thereby fully protecting domestic farmers, an official said on Wednesday.
At present, India's import duty on apples is 50 per cent. The commodity is a politically-sensitive subject for major apple-growing regions such as Himachal Pradesh and the Union Territory of Jammu and Kashmir.
As per the India-EU free trade agreement, the 50,000-tonne cap will be increased to one lakh tonnes over 10 years. The two sides on Tuesday announced the conclusion of the negotiations. It is expected to be signed and implemented this year itself.
"This means that the EU (European Union) apples will continue to face a minimum effective landed cost of around Rs 96 per kg. This preserves domestic price stability and safeguards domestic farmers' incomes, while supporting the strong market position of locally produced apples," the official said.
The official added that all the necessary measures are there in the FTA to protect the interests of domestic apple growers.
India's apple imports were about 5 lakh tonnes in 2024, with 25.7 per cent coming from Iran, 22.5 per cent from Turkiye and around 8 per cent from Afghanistan. The EU accounts for 11.3 per cent of the shipments.
The duty concessions will help diversion of imports from Iran and Turkiye.
"These imports are expected to be largely on the cost of existing imports and may replace some current sources without significantly increasing overall apple imports," the official added.
Under the pact, Indian apples too will get duty concessions in the EU market. The duties will be reduced to zero by the EU over five to seven years, a move which would open a premium segment for Indian apple producers.
"We have secured market access reciprocally," the commerce ministry official said, adding that the concession on apples is a measured, reciprocal, and balanced trade outcome that safeguards livelihoods, preserves price stability and enables new opportunities for our apple growers.