India caps EU apple imports at 50,000 tonnes at 20% duty; wine cuts phased over 7 years

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• India to reduce tariffs on EU apples and wines with quotas and price limits
• Indian apples and wines to gain preferential EU access with phased duty reductions
• Cheap wines excluded from concessions to safeguard local producers and farmers

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India’s proposed tariff concession to the European Union on apples and wines comes with tight quotas, minimum price thresholds, and long transition periods in a bid to protect domestic farmers and wineries.

India, and the EU announced the conclusion of talks for a trade deal on January 27 after nearly two decades of negotiations.

In apples, tariffs on EU shipments will be reduced to 20 percent, but imports will be capped at 50,000 tonnes, rising gradually over a decade, and subject to a minimum import price of Rs 80 per kg, commerce ministry sources said.

This translates into an effective landed cost of about Rs 86 per kg, keeping EU apples positioned in the premium segment and ensuring domestic price stability while preventing displacement of Indian growers, sources said.

In return, Indian apples will receive preferential access to the EU market, with customs duties phased down to zero over five to seven years, a move seen as helping growers in Himachal Pradesh, Jammu & Kashmir and Uttarakhand tap higher-value European markets.

India currently imports close to 5 lakh tonnes of apples annually, largely from Iran, Turkey and Afghanistan, while the EU accounts for over 11 percent of shipments.

In wines, where imports make up less than 1 percent of India’s alcohol consumption, duty cuts are restricted to higher-priced bottles, phased over seven years, while low-cost wines have been kept out to shield domestic producers in Maharashtra and Karnataka.

Duties on EU wines priced between €2.5 and €10 will be phased down to 30 percent over seven years, while those priced above €10 will settle at 20 percent.

Notably, no concessions have been offered on wines below €2.5 to protect grape farmers and producers in hubs such as Nashik and Karnataka.

Indian wines will also gain preferential market access in the EU, with customs duties cut from as high as €32 per hectolitre to zero, either upon entry into force of the agreement or phased out over three to seven years, alongside duty-free entry for 85,000 tonnes of table grapes.

A dedicated India-EU working group on wines and spirits has also been formed to facilitate regulatory alignment and knowledge exchange.