2 billion-strong market... mother of all deals: EU chief on pact with India, Pg1

Key Highlights:

• The European Union (EU) is nearing a trade deal with India, potentially giving the EU a "first mover advantage" in a 2 billion-strong market.
• Himachal Pradesh has requested an increase in import duty on apples from 50% to 100% and a ban on imports during peak season (July-November).
• The request follows the Centre’s reduction of import duty on New Zealand’s apples from 50% to 25% for April-August, under a Free Trade Agreement (FTA).
• India's overall apple production is around 28 lakh metric tonnes (LMT), with key states being Jammu & Kashmir (20 LMT) and Himachal Pradesh (5-6 LMT).

Detailed Insights:

• The reduced import duty on New Zealand apples, under the FTA, applies to a quota of 32,500 tonnes in the first year, with a minimum import price of $1.25 (Rs 113.6) per kg.
• Farmers are concerned about the overlap between the apple import season (April-August) and India’s off-season, when stored apples are sold, potentially undercutting domestic sales.
• Himachal Pradesh’s apple production fell to 4.84 LMT in 2023 due to floods, a 28% decrease from 2022, while in 2025, excessive rainfall led to quality deterioration and market losses.
• Climate change, erratic weather, reduced snowfall, and natural disasters have contributed to declining apple production and increased plant diseases in key states like Himachal Pradesh and Jammu & Kashmir.
• Farm associations are advocating for increased import duties, import bans during peak season, and farming subsidies to strengthen domestic growers and enhance productivity.

Key Concepts Involved:

• Free Trade Agreement (FTA): An agreement between two or more countries to reduce or eliminate trade barriers.
• Import Duty: A tax imposed on goods imported into a country.
• Quota System: A trade restriction that limits the quantity of goods that can be imported or exported during a specific period.