The 25 per cent tariff hike on Washington apples will clip volumes and raise prices of the popular ‘Red Delicious’ , a top local distributor said.
India imports 160,000 tonnes of apples annually from the US valued at around $160 million. It is the second largest export market after Mexico. This year, more than 7.7 million boxes ($118.3 million) have been shipped to India.
A 60-70 per cent drop in volume is possible due to the steep hike which will definitely result in higher consumer prices, Tarun Arora, Director, IG International, told Business Line.
“We would possibly be looking at some 50,000 tonnes of imports of about $50-60 million,” he said.
The new tariffs will take effect from August 4.
At this moment, it’s a very generous move by the government, it has at least given the industry time to clear the stocks enroute before the hike, he said.
Currently, about 2 million cartons of Washington apples worth $40-50 million on cif basis are en-route to India.
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