NDFC Seeks Walnut Tax Reforms Amidst Rising Market Demand

The Nuts and Dry Fruits Council of India (NDFC) urges the government to revise walnut import duty, lower GST to 5%, and consider a production-linked incentive system in pre-budget proposals. With domestic production lagging and reliance on imports, the council aims to support farmers and improve affordability.

The Nuts and Dry Fruits Council of India (NDFC) has called on the government to overhaul walnut import taxation, proposing a per-kilogram duty rate to replace the current percentage-based system. This adjustment is part of NDFC's pre-budget suggestions, which also include lowering the Goods and Services Tax (GST) on dry fruits to 5%.

According to NDFC, India's dry fruits market is anticipated to reach USD 12 billion by 2029, with demand growing at an 18% compound annual growth rate. Despite this, local production, especially of walnuts, is insufficient, with over 90% sourced from Kashmir.

To bolster domestic output, NDFC recommends increased subsidies and the implementation of a production-linked scheme for small and medium-scale operators. Coupled with strategic partnerships for technology transfer, these measures aim to reduce India's reliance on imports from countries like Chile and the USA.

(With inputs from agencies.)