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

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70 percent <strong>of</strong> total fruit production. 83 The lack <strong>of</strong> a fully developed cold chain particularly affects fruit <strong>and</strong> vegetable production <strong>and</strong> results in significant postharvest quality degradation <strong>and</strong> losses. Top horticulture-producing states by area are West Bengal, Uttar Pradesh, <strong>and</strong> Orissa. 84 <strong>India</strong> is the world’s largest producer <strong>of</strong> bananas <strong>and</strong> mangoes, with MY 2006/07 production <strong>of</strong> 20.9 mmt <strong>and</strong> 13.5 mmt, respectively. 85 Citrus ranks as the third-largest fruit by production volume, with 7.1 mmt in MY 2006/07. 86 Although they are produced in much smaller volumes, the production <strong>of</strong> grapes <strong>and</strong> apples, at 1.7 mmt <strong>and</strong> 1.6 mmt, respectively, in MY 2006/07 is significant in <strong>India</strong>. Grape production is mostly <strong>of</strong> table grapes, although wine grapes have been introduced to support a nascent wine industry. <strong>India</strong> is the sixth-largest producer <strong>of</strong> apples in the world, with the second-largest area, after China, but the lowest yields (5.5 mt/ha) <strong>of</strong> the major world producers. 87 A wide variety <strong>of</strong> vegetables is produced in <strong>India</strong>. Potatoes dominate national production, while onions, tomatoes, eggplant, tapioca, cabbage, <strong>and</strong> cauliflower are also important vegetable crops. <strong>India</strong> is the second-largest global producer <strong>and</strong> consumer <strong>of</strong> potatoes, which are a staple <strong>of</strong> the <strong>India</strong>n diet. <strong>India</strong> produced 30.2 mmt <strong>of</strong> potatoes in MY 2006/07. 88 <strong>India</strong> is the world’s largest producer <strong>of</strong> cauliflower, second largest in onions, <strong>and</strong> third largest in cabbage. Rising incomes <strong>and</strong> growing health awareness among <strong>India</strong>n consumers are contributing to rising production. Processing capacity for fruits <strong>and</strong> vegetables was 2.5 mmt in 2007. 89 The main processed products in the organized sector (with a 48 percent share <strong>of</strong> the sector as a whole 90 ) are juices, pulp concentrates, vegetable pastes, ready-to-serve beverages, ready-to-eat vegetables, jams, <strong>and</strong> frozen french fries. Tomato ketchup <strong>and</strong> jam production are currently very small but growing rapidly. About 20 percent <strong>of</strong> processed fruit <strong>and</strong> vegetable products are exported <strong>and</strong> consist <strong>of</strong> fruit pulps, pickles, chutneys, canned foods, <strong>and</strong> concentrated pulps <strong>and</strong> juices. Mangoes <strong>and</strong> mango-based products account for about 50 percent <strong>of</strong> those exports. 91 Consumption Traditionally, <strong>India</strong>ns do not consume large quantities <strong>of</strong> fruit or vegetables. Per capita fruit consumption is comparatively lower than other countries (e.g., 37.3 kilograms <strong>of</strong> fruit per capita in <strong>India</strong> versus 64.6 kilograms in China), 92 <strong>and</strong> only 4 percent <strong>of</strong> food expenditure goes to fruit. 93 <strong>India</strong>ns spend more <strong>of</strong> their food budget (10–12 percent) on 83 Dhankhar, <strong>India</strong>: Product Brief; <strong>India</strong>n Fresh Fruit Sector, December 16, 2008, 3. 84 The <strong>India</strong>n state <strong>of</strong> Gujarat is striving to become a horticulture hub <strong>and</strong> has recently experienced a tw<strong>of</strong>old increase in the l<strong>and</strong> already allotted to horticulture. The state government has plans to bring in another 20 million hectares. 85 Government <strong>of</strong> <strong>India</strong>, Ministry <strong>of</strong> Agriculture, Directorate <strong>of</strong> Economics <strong>and</strong> Statistics, Agricultural Statistics at a Glance, 2008. 86 Dhankhar, <strong>India</strong>: Product Brief; <strong>India</strong>n Fresh Fruit Sector, December 16, 2008, 11. 87 USDA, ERS, Prospects for <strong>India</strong>’s Emerging Apple Market, January 2006, 8. 88 Government <strong>of</strong> <strong>India</strong>, Ministry <strong>of</strong> Agriculture, Directorate <strong>of</strong> Economics <strong>and</strong> Statistics, Agricultural Statistics at a Glance, 2008. 89 Dhankhar, <strong>India</strong>: Food Processing Sector, July 2, 2008, 14. 90 IBEF, Food Processing: Market <strong>and</strong> Opportunities. 91 Ibid. 92 EIU, <strong>India</strong>: Food: Sub-Sector Update, November 11, 2008; EIU, China Food: Sub-Sector Update, January 20, 2009. 93 Dhankhar, <strong>India</strong>: Product Brief; <strong>India</strong>n Fresh Fruit Sector, December 16, 2008, 4. F-14
vegetables than fruit, <strong>and</strong> vegetable consumption is higher than fruit consumption. It is estimated that <strong>India</strong>ns each consumed 69.6 kilograms <strong>of</strong> vegetables in 2008. 94 Nonetheless, <strong>India</strong>’s vegetable consumption is still low compared to other countries. For example, China consumed an estimated 326.1 kilograms per capita <strong>of</strong> vegetables in 2008. 95 In <strong>India</strong>, the number <strong>of</strong> health-conscious consumers is rising, <strong>and</strong> fresh fruits are increasingly popular with this population. 96 Major fruits in <strong>India</strong> are those served by domestic production: bananas, mangoes, citrus fruits, papayas, guavas, grapes, <strong>and</strong> apples. 97 Citrus fruit consumption includes mousambi (sweet limes), limes, lemons, <strong>and</strong> oranges. Fruit consumption in <strong>India</strong> emphasizes locally grown types that are available in abundance at relatively low prices; bananas, mangoes, <strong>and</strong> citrus all have higher consumption levels than apples <strong>and</strong> grapes, which comm<strong>and</strong> higher prices in both domestic <strong>and</strong> imported versions. 98 Despite low per capita consumption, because <strong>of</strong> its sheer numbers, <strong>India</strong> is the sixth-largest consumer <strong>of</strong> apples in the world. 99 In northern <strong>India</strong>, where apples are produced, consumers dem<strong>and</strong> premium apples, but in southern <strong>India</strong>, where the climate is too warm for apple production <strong>and</strong> infrastructure deficiencies leave apples in short supply, consumers reportedly will purchase apples <strong>of</strong> any quality. 100 Nuts Production <strong>India</strong>ns are large consumers <strong>of</strong> several types <strong>of</strong> tree nuts, but domestic commercial production is limited to cashews <strong>and</strong> walnuts. <strong>India</strong> is the second-largest producer <strong>of</strong> cashews in the world after Vietnam <strong>and</strong> maintains a large, export-oriented cashewprocessing industry that includes significant imports <strong>of</strong> raw cashews from sub-Saharan Africa. The <strong>India</strong>n domestic cashew crop was 176,000 mt in MY 2008/09. 101 <strong>India</strong> produces relatively fewer walnuts; the MY 2008/09 walnut crop was 37,000 mt. 102 Walnuts are mainly grown in the northernmost state <strong>of</strong> Jammu <strong>and</strong> Kashmir on rocky terrain under rain-fed conditions. Yields for walnuts are relatively low because <strong>of</strong> poor genetics, lack <strong>of</strong> irrigation, <strong>and</strong> poor soil quality <strong>and</strong> management practices. 103 Consumption <strong>India</strong>ns consume multiple kinds <strong>of</strong> nuts, including cashews, almonds, pistachios, <strong>and</strong> walnuts. These are generally eaten as snack foods, although some types <strong>of</strong> nuts are also used in confectionery, cosmetics, <strong>and</strong> soap. 104 Cashews are the most prevalent <strong>and</strong> are 94 EIU, <strong>India</strong> Food: Sub-Sector Update, November 11, 2008. 95 Ibid.; EIU, China food: Sub-sector Update, January 20, 2009. 96 Dhankhar, <strong>India</strong>: Product Brief; <strong>India</strong>n Fresh Fruit Sector, December 16, 2008, 4. 97 USDA, ERS, Prospects for <strong>India</strong>’s Emerging Apple Market, January 2006, 5; Dhankhar, <strong>India</strong>: Product Brief; <strong>India</strong>n Fresh Fruit Sector, December 16, 2008, 3. 98 USDA, ERS, Prospects for <strong>India</strong>’s Emerging Apple Market, January 2006, 5. 99 Ibid., 1, 3, <strong>and</strong> 5. 100 Industry <strong>of</strong>ficial, interview by Commission staff, Mumbai, <strong>India</strong>, June 1, 2009. 101 The Cracker, International Nut <strong>and</strong> Dried Fruit Council Foundation, April 2009, 52. 102 Dhankhar, <strong>India</strong>: Tree Nuts, August 26, 2008, 4. 103 Dhankhar, <strong>India</strong>: Tree Nuts, September 14, 2007, 6. 104 Aradhey, <strong>India</strong>: Tree Nuts, September 11, 2008, 7. F-15
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United States International Trade C
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U.S. International Trade Commission
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Abstract This report describes <str
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TABLE ES.1 India:
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U.S. agricultural products face str
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U.S. Foreign Direct Investment U.S.
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CONTENTS Page Abstract ............
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CONTENTS―Continued Chapter 6 <str
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CONTENTS―Continued Figures 1.1. <
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ACRONYMS AND TERMS AAY Antodaya Ann
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ACRONYMS AND TERMS—Continued RGGV
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TABLE 1.1 India: A
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FIGURE 1.1 India:
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India’s central
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Despite their weak economic pr<stro
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Approach Current India</str
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Bibliography Birner, Regina, Surupt
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World Bank. Agriculture for Develop
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FIGURE 2.1 India:
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TABLE 2.1 India: A
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FIGURE 2.3 India:
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premium); (2) India</strong
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include government export restricti
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TABLE 2.3 India: A
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FIGURE 2.6 India:
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Exports by Major Trading Partner <s
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CHAPTER 3 Domestic Consumption Over
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TABLE 3.2 India: P
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more likely to have been exposed to
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BOX 3.3 Indian Con
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TABLE 3.3 India: T
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are expected to see income growth <
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Food Preferences India</str
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Regional Variation Geographic <stro
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CCC. “Know India
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CHAPTER 4 Indian A
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For most crops, however, In
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The Farm Sector soybeans 29 —but
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Food processing in India</s
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BOX 4.1 The Central Government’s
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BOX 4.2 Does the Minimum Support Pr
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August 3, 2009, New Delhi announced
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known as zamindars, have doubled or
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that the PFA Act was strictly enfor
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———. Bharat Nirman: A Time-Bo
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Organisation for Economic Co-operat
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CHAPTER 5 TARIFFS Overview
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sensitive. They include vegetable f
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wholly milled rice and</str
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The Indian governm
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India also reporte
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Reference Prices Reference prices,
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Landing Fees <stro
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Simulated Effects
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and nuts” by $0.
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5-19 TABLE 5.4 India</stron
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Bibliography Acharya, Keya. “Thor
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Indian Express.com
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CHAPTER 6 Nontariff</strong
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foreign sources. 6 For example, SPS
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BOX 6.1 Milk and M
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BOX 6.2 Wheat—Continued Yet, <str
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perpetuated continuously. The impor
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notices that must be integrated wit
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import corn under the TRQ is too bu
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Customs Procedures India</s
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Corruption Interests within <strong
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TABLE 6.2 India: E
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Bibliography American Apparel <stro
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Mattson, Jeremy W., Won, W. Koo, <s
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———. 2009 National Trade Esti
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TABLE 7.1 India: C
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First Point of Sal
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Private mandis Som
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approximately 65 million households
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7-10 TABLE 7.2 India</stron
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poor communications infrastructure
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limited popularity with farmers bec
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The lack of infras
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found that 39 percent of</s
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Bibliography Banerjee, A. Dairying
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Tiwari, Shri Rajendra Kumar. “Pos
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FDI Regulations and</strong
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TABLE 8.2 India: A
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Food Processing and</strong
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There is not necessarily a strong l
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For processing of
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BOX 8.3 Restrictions on Foreign Joi
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Under certain circumstances, FDI ca
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commenced. States tend to be quick
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Bibliography Bahn, Niti, an
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International Center for Alcohol Po
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Structure of the <
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BOX 9.1 The UPOV System for Plant V
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that the public sector in I
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Whether this situation will soon ch
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The U.S.-India Bus
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eggplant, which began field trials
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Maskus, Keith E. “Intellectual Pr
Page 205: APPENDIX A REQUEST LETTER
Page 208 and 209: The Honorable Sham L. Arano
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Page 213: APPENDIX C HEARING WITNESSES
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Page 219 and 220: Summary of Views <
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Page 223 and 224: highest in the Asia-Pacific region.
Page 225 and 226: to U.S. exports to India</s
Page 227 and 228: transparent sanitary regulations th
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Page 243: APPENDIX F INDIAN AGRICULTURAL PROD
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Page 250 and 251: is in nonirrigated areas with yield
Page 252 and 253: Consumption India
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Page 265: APPENDIX G UNION AND STATE/UNION TE
Page 268 and 269: certain agricultural goods in the p
Page 270 and 271: Bibliography Chaulan, Shri U.K. “
Page 273 and 274: Simulation Framework The effects <s
Page 275 and 276: Producers determine the optimal sup
Page 277 and 278: Applied ad valorem tariff equivalen
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Page 281 and 282: Estimation of <str
Page 283 and 284: Bibliography Anderson, Kym, Mariann
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