Chile’s walnut export industry has seen significant growth, with India emerging as a key market during the 2022-23 marketing year. Exports to India surged by 108%, making it the largest market for in-shell walnuts, surpassing Turkey. The trade value reached $125.48 million, nearly doubling from $64.28 million in the previous year, marking an impressive 95.2% increase.
The growth in demand for Chilean walnuts has had a notable impact on other walnut-producing regions. Following the removal of tariffs on Californian walnuts, the trade value of these exports increased from 1,496 metric tons in January 2023 to 3,538 metric tons in January 2024. This surge has affected the demand for walnuts from Kashmir, resulting in losses for local traders.
In the 2023-24 period, India exported 638.07 metric tons of walnuts to markets such as the Netherlands and the UK. However, this export volume is relatively small compared to India’s total walnut production and imports.
In Jammu and Kashmir, walnut production has declined, with output dropping from 1,95,066 metric tons in 2018-2019 to 1,80,973 metric tons in 2019-2020, according to data from the Jammu and Kashmir Horticulture Department. Dr. Imtiyaz Wani, an agricultural expert, emphasized the need for protective tariffs on foreign walnut imports to safeguard the region’s rural economy, where many farmers depend on walnut cultivation for their livelihood.
In 2021, walnut cultivation in Jammu and Kashmir spanned 95,601 hectares, with the highest productivity recorded in the Baramulla district. The region is also governed by the Jammu and Kashmir Preservation of Specified Trees Act, 1969, which requires permission for the felling or pruning of walnut trees. Environmental lawyer Nadeem Qadri raised concerns about the impact of development on these trees, while Dr. Wani called for increased government support for local walnut farmers and greater regulation of imports.
Despite a reduction in the Goods and Services Tax (GST) from 12% to 5%, many growers remain dissatisfied and are calling for the complete removal of the tax. Farmers and industry experts also advocate for the introduction of a Geographical Indication (GI) tag to enhance the value of Kashmiri walnuts. Dr. Wani further emphasized the need for improved infrastructure and the availability of grading machines to support the industry’s growth.
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