New Delhi: The Indian walnut industry has urged the government to revise its duty structure, advocating for a shift from an ad-valorem (value-based) system to a weight-based duty. The demand comes ahead of Prime Minister Narendra Modi’s upcoming visit to the United States, where trade and tariff negotiations are expected to feature prominently.
The Current Duty Challenge
Under the existing structure, walnuts imported into India are taxed based on their value, leading to disproportionately high duties on premium-quality nuts. Industry representatives argue that this system creates market distortions and puts domestic farmers at a disadvantage.
“Indian walnut growers face steep competition from cheaper imports, particularly from the U.S. and Chile. The value-based duty makes high-quality walnuts prohibitively expensive, limiting consumer access and hurting domestic farmers,” said Rajendra Mehta, President of the Walnut Growers Association.
The Push for a Weight-Based Model
The industry is proposing a fixed per-kilogram duty, similar to international best practices. This shift, they argue, would create a level playing field, simplify customs procedures, and improve market predictability.
“The government must rationalize walnut duties to support both Indian farmers and importers. A weight-based duty will ensure fair competition while making high-quality walnuts more accessible to consumers,” Mehta added.
Trade analysts believe that Modi’s discussions with U.S. officials could influence India’s stance on agricultural import policies, potentially leading to reforms that benefit both local growers and global suppliers.