BusinessWire India
New Delhi [India], January 31: The Forum of Indian Food Importers (FIFI), a leading non-government and not-for-profit entity representing over 6,500 stakeholders in India’s agriculture, food, and beverage industry, has formally requested the Government of India to reconsider the high Basic Customs Duty (BCD) on walnut imports.
Currently, walnuts attract a 100% BCD, a tariff that has significantly increased consumer prices and caused concerns among food processors, traders, and health-conscious consumers. FIFI has appealed to the government to reduce the duty to the original 30% or consider a specific tariff rate based on weight, which would help balance revenue generation while making walnuts more affordable for Indian consumers.
Upon being asked about the impact of high customs duty on tariff and its impact on Indian consumers Mr. Amit Lohani, Founder and Director of FIFI was quoted saying, “There are several global studies that recognize walnuts as a superfood, rich in Omega-3 fatty acids, antioxidants, and essential nutrients beneficial for heart health, diabetes management, and cognitive function. However, the steep customs duty has led to a sharp increase in market prices, with retail rates soaring from INR 850 per kg to INR 1,500 per kg, making this nutritious product inaccessible to many Indian consumers.” He further states, “According to industry estimates, while India’s last reported walnut production stands at 3,17,000 MT, only 35,000 MT is marketable and consumable. Simultaneously, India imports approximately 70,000 MT of walnuts, primarily from the Southern Hemisphere, ensuring year-round availability. Given the country’s limited domestic supply, reducing import duties is critical to stabilizing prices and meeting growing consumer demand.”
“FIFI acknowledges the government’s vision for self-reliance and inclusive growth in the walnut sector. While international businesses have expressed interest in developing walnut plantations in India, such initiatives require 5 to 12 years to yield results. In the interim, a lower import duty would bridge the supply gap, ensuring uninterrupted availability while enabling a gradual transition to enhanced domestic production,” said Mr. Raju Bhatia, Chairperson – Tree Nuts and Dry Fruits Committee of FIFI.
Lowering the BCD on walnut imports would yield broader economic and social benefits such as:
– Women Empowerment: A significant share of walnut processing–including cracking, grading, and packing–is carried out manually, with women forming the majority of the workforce. Reducing import duties would help sustain their employment and promote financial independence. Additionally, this initiative would contribute to India’s progress towards the United Nations Sustainable Development Goal (SDG) 5: Gender Equality.
-Support for Jammu & Kashmir’s Walnut Industry: J&K contributes 98% of India’s walnut production, but seasonal constraints cause factories to remain idle after February-March. Importing walnuts can help sustain year-round operations, ensuring continuous employment. This move would also align with the Skill India movement, fostering job creation and new opportunities for India’s youth.
-Health Benefits: Promoting walnut consumption aligns with public health goals by increasing access to a nutrient-dense food that supports overall well-being. Additionally, this aligns with the Prime Minister’s Eat Right India campaign under the Food Safety and Standards Authority of India (FSSAI).
-Strengthening Bilateral Ties: A revised duty structure could foster international collaborations and investment in India’s agricultural sector. This reform would also reinforce India’s standing in the Ease of Doing Business index.
FIFI has urged the government to take immediate steps to revise the high import duty, ensuring affordability for Indian consumers while sustaining domestic industry operations. A fair and balanced approach will not only protect the interests of local walnut growers but also encourage a healthy and sustainable market environment.
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