Dry fruits body NDFC seeks import duty rationalisation, lower GST in Budget

The Nuts and Dry Fruits Council (India) has sought rationalisation of walnut import duty on a per-kg basis and reduce GST to 5 per cent from current 18 per cent. The trade body in its pre-Budget proposals has also requested the government to announce a production-linked incentive (PLI) scheme for the sector, particularly for the small and medium-scale traders. “We have sought per-kilo import duty on walnuts instead of percentage-based taxation,” NDFC President Gunjan V Jain said in a statement while announcing MEWA India trade show’s second edition, scheduled for February 12-14 in Mumbai. Dry fruits market in India, which ranks as the world’s second-largest dry fruits consumer after the US, is projected to reach $ 12 billion by 2029, growing at 18 per cent CAGR, according to NDFC.

Jain said that there is a need to protect local farmers of walnuts despite the existing 100 per cent import tariff. The NDFC has suggested walnut import duty be fixed at ₹150 per kg. Kashmir accounts for over 90 per cent of domestic walnuts production. India imports a good volume of walnut from Chile and the US.

The council has also requested increased subsidies for expanding production areas under walnut and other dry fruits to reduce import dependence. “Currently, India is one of the top 10 countries when it comes to the production of walnuts. States such as Kerala and Karnataka are the biggest producers of cashews and other dry fruits. However, there is a critical need to address the challenges such as land fragmentation and high interest rates, which impede large-scale farming for the nuts and dry fruits industry,” Jain said. While dry fruits offer better returns compared to other crops, challenges include small landholdings, infrastructure gaps, lower yields and long gestation periods.

 The newly established NDFC is conducting walnut plantation drives in Kashmir, Himachal Pradesh and Uttarakhand, targeting 2 lakh trees in two years. It has also partnered with an industry body of Chile for technology transfer and knowledge sharing.

Over 300 exhibitors from more than 50 countries, including key markets such as the US, Chile, Iran, Turkey, Oman, Saudi Arabia and Australia, will be participating in the exhibition.