Srinagar, Apr 7: Panic has gripped walnut growers and dealers after US President Donald Trump’s 26% reciprocal tariff on Indian.
Growers fear that India may reduce the tariff on US walnuts which can flood imported variety to Indian markets leaving local fruit sector in tatters.
Currently, India charges a 52% import duty on US walnut imports, but growers worry that India may lower this tariff in response to the US move. Such a reduction, they argue, would further damage the domestic walnut industry, which is already struggling against the influx of cheaper Californian walnuts.
Bahadur Khan, President of the Kashmir Dry Fruit Association, warned that if import duties on US walnuts are reduced, the local industry could suffer irreversible damage.
“The heavy imports from the US have already reduced the demand for Kashmiri organic walnuts by more than 50% over the past decade. Exports from Kashmir have nearly dropped to zero during this period. Noteworthy, earlier we would export 85 percent of walnut produce,” he said.
Khan also called for the government to revoke the Goods and Services Tax (GST) on walnuts, stating that it has added to the financial strain on local traders. “The walnut industry is a crucial part of Kashmir’s horticulture sector, but if import duties are slashed, there might be no takers for our produce. The government must intervene before it’s too late,” he added.
With declining exports and increased competition from US imports, walnut growers in Kashmir are urging policymakers to protect the industry from further decline. The uncertainty over tariff policies has left many fearing for their livelihoods in a market already dominated by foreign competition.
Meanwhile, a walnut dealer highlighted that many traders have permanently abandoned this trade due to the lack of returns. “Walnuts, like apples, used to be the main cash crop of Kashmir. A major section of our population used to be associated with this trade. Now, rarely, people are associated with walnut trading because of the low market demand,” said Bashir Ahmad Wani, a dealer.