US exports of California walnuts to India have experienced a significant increase, with imports more than doubling between September and November, compared to the same timeframe last year. This surge follows India's decision to eliminate its retaliatory customs tariffs on the dry fruit.
Just before president Biden's visit to New Delhi for the G20 Summit in September, India decided to remove additional customs duties imposed on several US goods in 2019. This was initially a response to the US increasing tariffs on certain steel and aluminum products from India.
During Indian Prime Minister Modi's inaugural state visit to the US in June, both countries agreed to resolve six World Trade Organization disputes and remove retaliatory tariffs on several US products, including walnuts. India also reduced additional duty on a range of products such as chickpeas, lentils, almonds, and fresh apples.
California walnuts, which are harvested from September to November and shipped throughout the year, constitute 99% of total US production and almost half of the global trade. The largest export market is Germany, followed by West Asia and Turkey.
Exports to India, initiated in 2013, reached a high in 2016-17 with 14,385 tons. However, due to high tariffs, crop issues, and Covid-19 disrupting global supply chains, imports dropped to 3,552 tons in 2021-22, according to data from the California Walnut Commission.
As California's walnut market share in India decreased from 69.9% in 2017-18 to 14.8% in FY23, other countries capitalized on India's additional duties on American products. Currently, Chile is the top walnut exporter to India, with a market share of 75.3% in FY23, a significant increase from 29.7% in FY18.