Dry Fruits Council Proposes Import Duty and GST Reform

The Nuts and Dry Fruits Council (NDFC) of India has called on the government to reform walnut import duties and reduce the GST rate on dry fruits from 18% to 5%. These proposals, part of the council’s pre-Budget recommendations, aim to address industry challenges and support growth.

NDFC’s Key Proposals

NDFC President Gunjan V Jain recommended switching from a percentage-based walnut import duty to a per-kilogram tax to better support local farmers. The council has proposed a flat duty rate of USD 1,80 per kg, which would benefit walnut growers in Kashmir, responsible for more than 90% of India’s domestic walnut production.

Other suggestions include:

• Production-Linked Incentive (PLI) Scheme: To help small and medium traders remain competitive.
• Subsidies to expand cultivation areas for walnuts and other dry fruits, reducing reliance on imports.

Jain highlighted challenges faced by farmers, such as fragmented landholdings, high-interest rates, and inadequate farming infrastructure, which limit large-scale production and yield.

India’s Expanding Dry Fruits Market

India is the second-largest dry fruits consumer globally, with the market expected to reach USD 12 billion by 2029, growing at an 18% CAGR.

Major cashew cultivation areas include Kerala and Karnataka, while walnut production is concentrated in Kashmir, Himachal Pradesh, and Uttarakhand. To boost domestic production, NDFC has initiated a plantation drive to plant 200,000 trees within two years. The council has also partnered with Chilean industry leaders to share knowledge and technology.

The second edition of the MEWA India trade show will take place in Mumbai from February 12–14. The event will feature over 300 exhibitors from 50 countries, including participants from the US, Chile, Iran, Turkey, Oman, Saudi Arabia, and Australia.

Addressing Industry Challenges

While dry fruits offer high returns, the sector faces issues such as small landholdings, long cultivation cycles, and poor infrastructure. NDFC’s proposals for reforming import duties and reducing GST aim to address these challenges, supporting domestic farmers and traders.

By implementing these measures, India could reduce reliance on imports and strengthen its position in the global dry fruits market.





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