India: Effects of Tariffs and Nontariff Measures on U.S. ... - USITC

stated that U.S. exports <strong>of</strong> apples <strong>and</strong> pears would likely double if the tariffs are reduced.
In addition to high tariffs, the council stated that U.S. cherry exports are restricted by the
lack <strong>of</strong> a reliable cold chain <strong>and</strong> a restrictive phytosanitary protocol. <strong>India</strong>n phytosanitary
protocols require cherries to be fumigated with methyl bromide, which reduces quality
<strong>and</strong> limits shelf life.
Paramount Farms 22
In his direct testimony, Mark Masten, senior vice president <strong>of</strong> sales for Paramount Farms,
a California company involved in pistachio growing, processing, <strong>and</strong> export, described
his organization as the single-largest producer <strong>of</strong> pistachios in the world. Mr. Masten
noted that <strong>India</strong> is a burgeoning market for pistachios because <strong>India</strong> does not grow them,
yet it has a growing middle class <strong>and</strong> lifestyle changes that are driving a rise in the
incidences <strong>of</strong> Type 2 diabetes <strong>and</strong> the need for healthy snacks. Paramount Farms is
committed to exporting to the <strong>India</strong>n market <strong>and</strong> has invested in a pistachio processing
plant in Gujarat, <strong>India</strong>, which was to be inaugurated in June 2009. Paramount Farms is
working to reduce the current 30 percent tariff on pistachios, which it has found makes it
difficult for California pistachios to achieve the price point that could reach the majority
<strong>of</strong> the <strong>India</strong>n middle class. Mr. Masten used U.S. almond exports to <strong>India</strong> as an example
to describe what might happen if the pistachio tariff were lowered. After the almond
import tariff was cut in half, almond consumption doubled <strong>and</strong> <strong>India</strong>n government tax
revenue increased by 71 percent during 2001–06. Mr. Masten noted that Paramount
Farms also produces <strong>and</strong> exports almonds <strong>and</strong> benefited from that change.
Sunkist Growers 23
In a written submission, Sunkist Growers stated that it is a nonpr<strong>of</strong>it membership
cooperative <strong>and</strong> marketing association owned by <strong>and</strong> operated on behalf <strong>of</strong> its member
farmers, who produce about 65 percent <strong>of</strong> California <strong>and</strong> Arizona citrus. Sunkist Growers
stated that it markets its members’ produce, develops <strong>and</strong> maintains reliable domestic <strong>and</strong>
export markets in order to get the highest returns for its member growers, <strong>and</strong> provides
consumers with premium quality fresh <strong>and</strong> processed citrus products. Sunkist’s principal
products are fresh oranges, lemons, grapefruit, tangerines, citrus juices, <strong>and</strong> other
processed citrus products. They are marketed under the SUNKIST trademark. Sunkist
currently exports some 33 percent <strong>of</strong> its fresh citrus production, accounting for 45 percent
<strong>of</strong> its farmers’ fresh fruit revenue.
Sunkist stated that it would like to export its products to <strong>India</strong>, which it views as a
potentially important market for citrus products, but high tariff <strong>and</strong> NTMs prevent
exports in consequential amounts. Although <strong>India</strong> is not currently a meaningful export
market for fresh oranges, lemons, <strong>and</strong> grapefruit, or frozen concentrated orange juice
(FCOJ) from the United States, Sunkist views <strong>India</strong> as a potentially large market for these
products, provided that its high tariffs are removed or reduced.
Although <strong>India</strong> produces citrus, its production is limited to loose-skin tangerines,
m<strong>and</strong>arins, lemons, <strong>and</strong> limes. Fresh citrus is an important part <strong>of</strong> the <strong>India</strong>n diet. <strong>India</strong>
currently imports limited quantities <strong>of</strong> fresh citrus, mainly oranges, which are used in the
22 USITC, Hearing transcript, April 21, 2009, 29–34 (testimony <strong>of</strong> Mark Masten, Paramount Farms).
23 Sunkist Growers, written submission to the USITC, May 1, 2009.
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