New Delhi: Indian fruit traders and exporters are taking the next step in their fight to reclaim some of their market share from the country’s foreign competition and the US.
In November, India’s cabinet approved a new law which would allow it to sell some of the fruits it had previously sold to US firms and allow it sell some fruits to Indian exporters.
India has been selling some of these fruit to US exporters and even to multinational companies.
But the move comes at a time when its exporters have become more competitive and its foreign market is growing.
It is expected to boost the Indian export market by 10-20 per cent by 2020.
The exporters argue that India is losing out to US companies because the fruits sold in India are often produced in the US and sent to India.US President Donald Trump and India’s Prime Minister Narendra Modi at a summit in New Delhi on November 17, 2021.
ReutersThe Indian government’s move to allow imports of fruits from other countries, including China, will come as a relief to the exporters who are hoping to see some of this fruit sell in India.
But Indian exporter Sanjeev Kumar says it could also undermine the government’s push to diversify its exports, including by bringing more fruits to India and boosting imports of other crops.
“If the government can sell its fruits to US-based exporters at a competitive price, then what is the need to diversifying our exports?
It is a good idea to diversification, but that does not mean we should sell all our fruit to American firms,” Kumar told Reuters.
The exporters say the new law will allow them to sell fruit to companies that have invested heavily in research and development and marketing, as well as in new products, such as fruit oil, which has been used in some medicines.
The new law also makes it easier for Indian expats to buy and sell US fruits from US importers.
But it will only be possible if the expats buy and distribute fruits through their own facilities and pay taxes on them.
The bill also gives exporters the right to buy up to 20 per cent of the fruit in Indian markets and import them, and gives expats the right, if they own more than 20 per, to buy fruit from foreign companies and sell it to Indian consumers.
India’s foreign exchange reserves are worth $7.3 billion, compared to $5.6 billion in November.
India’s foreign trade with the US is worth $18.5 billion, while its trade with China is worth about $3.5 million.