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

premium); (2) <strong>India</strong>n consumption patterns favoring certain pulses, such as desi
chickpeas, pigeon peas, mung beans, <strong>and</strong> black matpe, <strong>of</strong> which the United States is not a
major producer; 21 <strong>and</strong> (3) the ability <strong>of</strong> producers in other countries to ship larger
volumes than their counterparts in the United States. 22
Among pulses, peas are the largest import item, with <strong>India</strong>n imports growing from
$149 million in 2004 to $720 million in 2008, in response to strong consumer dem<strong>and</strong>
during this period. Canada is the leading supplier <strong>of</strong> peas to the <strong>India</strong>n market, accounting
for about 70 percent <strong>of</strong> all pea imports during 2006–08 (fig. 2.4). In 2007, the United
States became <strong>India</strong>’s second-largest supplier <strong>of</strong> peas, <strong>and</strong> in 2008, its share <strong>of</strong> <strong>India</strong>n pea
imports was 12 percent. 23 <strong>India</strong>n imports <strong>of</strong> beans, the second-largest pulses import item,
increased during 2004–08 (table 2.1). Three-quarters <strong>of</strong> <strong>India</strong>n bean imports were
supplied by Burma during 2006–08 (fig. 2.4), which benefits from close proximity to the
<strong>India</strong>n market <strong>and</strong> produces the types <strong>of</strong> beans in high dem<strong>and</strong> by <strong>India</strong>. 24
<strong>India</strong> is a large importer <strong>of</strong> nuts, <strong>and</strong> during 2006–08, cashews alone accounted for
6 percent <strong>of</strong> <strong>India</strong>n agricultural imports, mostly supplied by several African countries
(fig. 2.4). Most <strong>of</strong> the cashews imported into <strong>India</strong> are “in-shell” <strong>and</strong> manufactured into
higher-value processed cashews <strong>and</strong> cashew products, many <strong>of</strong> which are exported to the
United States, EU-27, Japan, <strong>and</strong> the Middle East. 25
Almonds are the largest <strong>India</strong>n agricultural import from the United States, accounting for
36 percent <strong>of</strong> all imports from the United States during 2003–08. With limited domestic
production, 26 strong domestic dem<strong>and</strong> growth, 27 <strong>and</strong> low tariffs, 28 <strong>India</strong>n almond imports
have risen rapidly in recent years, increasing from about 21,000 mt in 2003 to 51,000 mt
in 2008. 29 The United States is by far the largest supplier, accounting for about 85 percent
<strong>of</strong> <strong>India</strong>n almond imports during this period, although since 2007, the United States has
faced increasing competition from Australia.
Certain imported agricultural products are used as inputs for the <strong>India</strong>n textile <strong>and</strong>
apparel industry, including cotton, wool, <strong>and</strong> leather. During 2006–08, these products
accounted for 13 percent <strong>of</strong> <strong>India</strong>n agricultural imports. <strong>India</strong> is a major cotton-producing
country, but its production is not sufficient to meet the dem<strong>and</strong> from its textile mills.
Cotton is the second-largest <strong>India</strong>n agricultural import from the United States, accounting
for 19 percent <strong>of</strong> all agricultural imports during 2006–08 (fig. 2.3). Egypt is the other
major supplier, mostly <strong>of</strong> long <strong>and</strong> extra-long staple cotton. Certain sub-Saharan African
countries also supply cotton to the <strong>India</strong>n market. 30
21 Industry representative, interview by Commission staff, Mumbai, <strong>India</strong>, May 28, 2009.
22 The United States reportedly does not have large exportable surpluses. Moreover, U.S. pulse exporters
ship in costlier containers rather than bulk vessels. Industry representatives, interviews by Commission staff,
Mumbai, <strong>India</strong>, May 26 <strong>and</strong> May 30, 2009.
23 Pea imports from the United States are green peas, which are not grown in <strong>India</strong> <strong>and</strong> are eaten largely
as snacks. Industry representative, interview by Commission staff, Mumbai, <strong>India</strong>, May 28, 2009.
24 Aradhey, <strong>India</strong>: Grain <strong>and</strong> Feed; Pulses Situation <strong>and</strong> Outlook, December 14, 2007.
25 GTIS, World Trade Atlas Database (accessed June 8, 2009).
26 <strong>India</strong>n almond production accounted for about 3 percent <strong>of</strong> domestic consumption in 2008. Aradhey,
<strong>India</strong>: Tree Nut, September 17, 2008.
27 Almonds are very popular in <strong>India</strong> <strong>and</strong> have special significance in the <strong>India</strong>n diet. Industry
representative, interview by Commission staff, Mumbai, <strong>India</strong>, May 11, 2009.
28 In 2008, the <strong>India</strong>n tariff on imported in-shell almonds was Rs. 35 per kilogram (about 18–20 percent
ad valorem equivalent).
29 U.S. almonds are imported “in-shell.”
30 Singh, <strong>India</strong>: Cotton <strong>and</strong> Cotton Products, December 5, 2008.
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