January 7, 2015

Despite high import tariffs on many food items and a complex market, the U.S. Department of Agriculture (USDA) has made almonds a top recommendation for U.S. exporters seeking a strong entry into the Indian market. Although the Indian market is small, it is growing due to globalization and rising income levels with imports of nuts and fresh and dried fruits doubling to a value of US$3.2 billion over the last five years. U.S. almond exports to India have grown by 20% over the same time period, accounting for 80% of India’s total almond imports. The value of U.S. almond exports to India for FY 2013/14 reached $380 million – up 140% from a value of $158 million for FY 2009/10. In addition to higher incomes, changing tastes, and a shift toward healthier foods, the expansion of the food processing industry in India is expected to increase demand for U.S. almonds in the near future along with pistachios, fruit and fruit juices, sauces, beverages, and sugar confectionary according to the USDA. However, tariffs of between 30% and 40% on many food items and ban on certain products by the Indian government impede the growth of U.S. food imports to India, and the USDA adds that it is recommended that U.S. companies partner with Indian companies to manage these obstacles.

Read the article

To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free weekly enhanced eNews service