Required Report - public distribution

**Date:** 8/18/2005

**GAIN Report Number:** IN5091

IN5091

**India**

**Tree Nuts**

**Annual**

**2005**

**Approved by:**

![](media/image1.wmf)Chad R. Russell

U.S. Embassy, New Delhi

**Prepared by:**

Santosh Kr. Singh

**Report Highlights:**

Post forecasts India's almond imports for marketing year (MY) 2005/06
(September/August) at 22,800 tons (in-shell basis), due to expected high
US prices and resultant weaker demand.

With respect to walnuts, Post forecasts India's production for MY
2005/06 (October/September) at 32,000 tons (kernel weight basis) because
of favorable weather conditions. Forecasts for exports (lower) and
consumption (higher) are 14,000 tons and 18,000 tons, respectively.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

New Delhi \[IN1\]

\[IN\]

**Table of Contents**

[**SECTION I - SITUATION & OUTLOOK 3**](#section-i---situation-outlook)

[ALMONDS 3](#almonds)

[Production 3](#production)

[Consumption 3](#consumption)

[Trade 3](#trade)

[Trade Policy & Marketing Opportunities
4](#trade-policy-marketing-opportunities)

[WALNUTS 4](#walnuts)

[Production 4](#production-1)

[Consumption 4](#consumption-1)

[Trade 5](#trade-1)

[Trade Policy 5](#trade-policy)

[SECTION II -- STATISTICAL TABLES 6](#section-ii-statistical-tables)

[Table 1: Commodity, Almond, PSD Table
6](#table-1-commodity-almond-psd-table)

[Table 2: Commodity, Almond, Prices Table
7](#table-2-commodity-almond-prices-table)

[Table 3: Wholesale Almond Kernel Prices (Rs./Kg.), Delhi Market
7](#table-3-wholesale-almond-kernel-prices-rs.kg.-delhi-market)

[Table 4: Commodity, Almond, Import Trade Matrix
8](#table-4-commodity-almond-import-trade-matrix)

[Table 5: Commodity, Walnut, PSD Table
9](#table-5-commodity-walnut-psd-table)

[Table 6: Commodity, Walnut, Price Table
10](#table-6-commodity-walnut-price-table)

[Table 7: Walnut Prices during 2003/04
10](#table-7-walnut-prices-during-200304)

[Table 8: Commodity, Walnut, Export Trade Matrix
11](#table-8-commodity-walnut-export-trade-matrix)

[Table 9: Almonds and Walnuts Tariffs
12](#table-9-almonds-and-walnuts-tariffs)

# SECTION I - SITUATION & OUTLOOK

# 

## ALMONDS

### Production

India's small almond crop is forecast at 1,000 tons (kernel weight
basis) for marketing year (MY) 2005/06 (September/August) and is
forecast at 1,200 tons in MY 2006/07, assuming normal weather in the
major growing region of the Kashmir valley. Yields range from 1000-1500
nuts/tree/year; shelling rates are 20-25 percent (hard shell varieties)
to 40 percent (thin-shelled varieties).

### Consumption

Almond consumption in MY 2005/06 is forecast to decline by over 11
percent to 24,000 tons on expected 'relatively high' prices of almonds
(due to high import price of US almonds) vis-à-vis prices of other nuts.
Consumption is forecast to recover to 27,000 tons in MY 2006/07 if
import prices decline.

MY 2004/05 consumption has been revised higher to 27,000 tons on strong
domestic demand.

Almond consumption over the past few years has grown steadily, propelled
by a strong economy, expanding middle class, growing health awareness,
and attractive relative prices. India's consumption of almonds is almost
entirely met through imports, with the United States capturing about an
85 percent share of the import market. Consequently, domestic market
prices are strongly influenced by US prices.

Although almond prices were ruling well above the previous year's level
since the beginning of the 2004/05 marketing year (see table 2), prices
of other competing nuts (pistachios, cashew, walnut) were also higher
during the peak consumption season of September to January. However,
since March 2005, almond prices have risen sharply, whereas prices of
other nuts have declined or remained stable. In early April, almond
wholesale prices crossed the rs. 400/kg (\$4.2/lb) level for the first
time in two decades. According to trade sources, higher prices
diminished demand, both for direct consumption and industrial use.
Nevertheless, February to August, a lean consumption period for almonds,
overall consumption during MY 2004/05 grew to 27,000 tons. However,
continuing high export prices for US almond may further fuel the
domestic prices in India during the upcoming season and constrain MY
2005/06 consumption.

Indian consumers consider almonds a 'high energy' food, especially good
for children, recuperating patients, and physically active people.
Almonds are consumed as whole nuts and/or used in local desserts,
sweets, and confectionary products. Consumption peaks during the
September-January festival period. Traditional higher income households
prefer Iranian (Mamra/Qumi) almonds despite their high price premium
(see table 3). Most of the spoiled/rancid almond kernels are processed
for oil by cosmetic/health care product companies.

### Trade

Post forecasts India's almond imports for marketing year 2005/06 at
22,800 tons (in-shell basis), down 15 percent for the previous year.
High domestic prices triggered by higher prices for US almonds dampened
consumption and thus imports. Assuming a slow down in US prices in
2006/07, imports are forecast to rebound to 25,500 tons.

Almond is a consistently leading US agricultural export product to
India, with volumes increasing from 6,000 tons in 1996/97 to a record
23,530 tons in 2004/05. Imports from Afghanistan, the second major
supplier, have also increased in recent years due to the tariff
concession (50 percent of the applicable basic duty) granted under the
Indo-Afghan Preferential Trade Agreement (see IN3040). Imports from Iran
have declined on lower supplies. More recently, Chile is emerging as a
small but growing supplier of almonds to India. Imports from the United
States and Australia are mostly nonpareils in shell and are hand shelled
locally. Imports from other origins are mostly in the form of kernels.

### Trade Policy & Marketing Opportunities

There are no quantitative restrictions on almond imports. However, high
tariffs (see table 9) constrain import growth. Market sources assess
India's import potential for US almonds at about 35,000 tons if tariff
levels were brought down to rs. 15-20/kg from the existing rs. 35/kg.
Post strongly supports the US almond industry's marketing efforts in
India, focused on promoting year-around consumption of almonds by
highlighting their nutritional benefits.

## 

## WALNUTS

### Production

Post forecasts India's walnut production for MY 2005/06
(October/September) at 32,000 tons (kernel weight basis) because of
favorable weather conditions. Rains in February/March provided an
optimum moisture regime for trees reaching the flowering/fruit setting
stage; backup monsoon rains supported fruiting and nut formation. There
were no reports of major pest or disease outbreaks in the growing areas.
Rains in September, coinciding with harvesting, could adversely affect
quality. Assuming normal weather, MY 2006/07 walnut production is
forecast at 34,000 tons.

Post revised downward walnut production for MY 2004/05 to 31,000 tons,
due to the impact of a May snowfall on yields.

Walnuts are grown almost entirely in Jammu and Kashmir under rainfed
conditions in rocky terrain. Stagnant grower prices and continued
terrorist violence in Kashmir have discouraged additional plantings.
Yields are low, ranging from 18-50 kg/tree/year, due to the lack of
irrigation and low soil fertility. Nut sizes range from 24-32 mm. Indian
walnuts are classified as hard, medium or thin shell (Kaghazi). The
average shelling rate is 40 percent, but can go as high as 70 percent in
the case of the thin-shelled 'Bakshi' variety. End-August through
September is the typical harvest season with market arrivals peaking in
late October.

### Consumption

Walnut consumption in MY 2005/06 is forecast to increase by six percent
to 18,000 tons on expected larger production and higher prices for
competing almonds. Consumption in 2006/07 is forecast to increase to
18,500 tons due to larger supplies.

Tight domestic supplies and high prices of competing nuts (almonds and
pistachios) fueled walnut prices to record levels in MY 2004/05 (see
tables 6 & 7). Prices are expected to remain strong in MY 2005/06 on
anticipated strong domestic demand. Better consumer packaging (vacuum
packs) has encouraged middle class consumers to eat walnuts as a
year-round snack. The use of walnuts by the confectionary and ice cream
industries is expected to increase in MY 2005/06 due to competitive
pricing of walnuts vis-à-vis substitute nuts.

### Trade

Post forecasts exports to decline to 14,000 tons, as surplus
availability diminishes following higher domestic demand. However,
exports in MY 2006/07 are forecast to increase to 15,400 tons on
improved supplies.

MY 2004/05 exports have been revised lower to 14,400 ton on account of
lower production and strong domestic demand.

Market sources report higher export defaults following strengthening of
prices during the period November 2004 through January 2005. Major
export destinations in MY 2004/05 were Spain, Germany, Egypt, U.K.,
Greece, Denmark, Netherland, Taiwan, and New Zealand (see table 8). More
than 95 percent are exported as kernels (40 percent light halves; 20
percent amber halves/broken; and the balance as brokens) in vacuum
packs.

### Trade Policy

There are no quantitative restrictions on imports. A duty of 30.6
percent is applied to imported walnuts (see tariff table 9). Although
South Asian Association for Regional Cooperation (SAARC) countries and
Afghanistan have better market access under preferential trade
agreements, given strong domestic production and high tariffs, imports
are unlikely.

# SECTION II -- STATISTICAL TABLES

## Table 1: Commodity, Almond, PSD Table

+------------+----------+-----+----+------+--------+------+---------+
| **PSD      |          |     |    |      |        |      |         |
| Table**    |          |     |    |      |        |      |         |
+------------+----------+-----+----+------+--------+------+---------+
| *          | *        |     |    |      |        |      |         |
| *Country** | *India** |     |    |      |        |      |         |
+------------+----------+-----+----+------+--------+------+---------+
| **C        | **Al     |     |    |      | (HA)   |      |         |
| ommodity** | monds,** |     |    |      |        |      |         |
|            |          |     |    |      | (1000  |      |         |
|            | *        |     |    |      |        |      |         |
|            | *Shelled |     |    |      | TREE   |      |         |
|            | Basis**  |     |    |      | S)(MT) |      |         |
+------------+----------+-----+----+------+--------+------+---------+
|            | 2004     | R   | 20 | Esti | 2006   | Fore | UOM     |
|            |          | evi | 05 | mate |        | cast |         |
|            |          | sed |    |      |        |      |         |
+------------+----------+-----+----+------+--------+------+---------+
|            | USDA     | P   | US | Post | USDA   | Post |         |
|            |          | ost | DA |      |        |      |         |
|            | Official |     |    | Esti | Of     | Es   |         |
|            |          | Es  | Of | mate | ficial | tima |         |
|            | \[Old\]  | tim | fi |      |        | te\[ |         |
|            |          | ate | ci | \[N  | \      |      |         |
|            |          |     | al | ew\] | [Old\] | N    |         |
|            |          | \   |    |      |        | ew\] |         |
|            |          | [Ne | \  |      |        |      |         |
|            |          | w\] | [O |      |        |      |         |
|            |          |     | ld |      |        |      |         |
|            |          |     | \] |      |        |      |         |
+------------+----------+-----+----+------+--------+------+---------+
| **Market   |          | 0   |    | 09/  |        | 09/  | MM/YYYY |
| Year**     |          | 9/2 |    | 2005 |        | 2006 |         |
|            |          | 004 |    |      |        |      |         |
| **Begin**  |          |     |    |      |        |      |         |
+------------+----------+-----+----+------+--------+------+---------+
| Area       | 19000    | 19  | 1  | 1    | 0      | 1    | (HA)    |
| Planted    |          | 000 | 90 | 9000 |        | 9000 |         |
|            |          |     | 00 |      |        |      |         |
+------------+----------+-----+----+------+--------+------+---------+
| Area       | 16900    | 169 | 1  | 1    | 0      | 1    | (HA)    |
| Harvested  |          | 000 | 70 | 7000 |        | 7000 |         |
|            |          |     | 00 |      |        |      |         |
+------------+----------+-----+----+------+--------+------+---------+
| Bearing    | 1100     | 1   | 11 | 1120 | 0      | 1120 | (1000   |
| Trees      |          | 100 | 20 |      |        |      | TREES)  |
+------------+----------+-----+----+------+--------+------+---------+
| N          | 200      | 200 | 2  | 200  | 0      | 200  | (1000   |
| on-Bearing |          |     | 00 |      |        |      | TREES)  |
| Trees      |          |     |    |      |        |      |         |
+------------+----------+-----+----+------+--------+------+---------+
| Total      | 1300     | 1   | 13 | 1320 | 0      | 1320 | (1000   |
| Trees      |          | 300 | 20 |      |        |      | TREES)  |
+------------+----------+-----+----+------+--------+------+---------+
| Beginning  | 6600     | 6   | 63 | 7190 | 6400   | 6990 | (MT)    |
| Stocks     |          | 290 | 00 |      |        |      |         |
+------------+----------+-----+----+------+--------+------+---------+
| Production | 1200     | 1   | 11 | 1000 | 0      | 1200 | (MT)    |
|            |          | 100 | 00 |      |        |      |         |
+------------+----------+-----+----+------+--------+------+---------+
| Imports    | 23500    | 26  | 2  | 2    | 0      | 2    | (MT)    |
|            |          | 800 | 50 | 2800 |        | 5500 |         |
|            |          |     | 00 |      |        |      |         |
+------------+----------+-----+----+------+--------+------+---------+
| **TOTAL    | *        | **3 | *  | *    | **     | *    | (MT)    |
| SUPPLY**   | *31300** | 419 | *3 | *309 | 6400** | *336 |         |
|            |          | 0** | 24 | 90** |        | 90** |         |
|            |          |     | 00 |      |        |      |         |
|            |          |     | ** |      |        |      |         |
+------------+----------+-----+----+------+--------+------+---------+
| Exports    | 0        | 0   | 0  | 0    | 0      | 0    | (MT)    |
+------------+----------+-----+----+------+--------+------+---------+
| Domestic   | 25000    | 27  | 2  | 2    | 0      | 2    | (MT)    |
|            |          | 000 | 60 | 4000 |        | 7000 |         |
| C          |          |     | 00 |      |        |      |         |
| onsumption |          |     |    |      |        |      |         |
+------------+----------+-----+----+------+--------+------+---------+
| Ending     | 6300     | 7   | 64 | 6990 | 0      | 6690 | (MT)    |
| Stocks     |          | 190 | 00 |      |        |      |         |
+------------+----------+-----+----+------+--------+------+---------+
| #####      | *        | **3 | *  | *    | **0**  | *    | (MT)    |
| ### TOTAL  | *31300** | 419 | *3 | *309 |        | *336 |         |
|            |          | 0** | 24 | 90** |        | 90** |         |
| **DIST     |          |     | 00 |      |        |      |         |
| RIBUTION** |          |     | ** |      |        |      |         |
+------------+----------+-----+----+------+--------+------+---------+

Note: The PSD is based on discussions with major traders.

## Table 2: Commodity, Almond, Prices Table

  --------------- ----------------------- --------------------- ----------
  **Prices                                                      
  Table**                                                       

  **Country**     India                                         

  **Commodity**   Almonds, Shelled Basis                        

  Prices in       Rupees                  per uom               100 Kg.

                                                                

  Year            2004                    2005                  \% Change

  Jan             30675                   38500                 26%

  Feb             30700                   37700                 23%

  Mar             30800                   38300                 24%

  Apr             30100                   41850                 39%

  May             30400                   45775                 51%

  Jun             30550                   46275                 51%

  Jul             31550                   45500                 44%

  Aug             33200                                         -100%

  Sep             36900                                         -100%

  Oct             35900                                         -100%

  Nov             36800                                         -100%

  Dec             38300                                         -100%

                                                                

  Exchange Rate   44.35                   Local Currency/US \$  

  Date of Quote   08/11/05                MM/DD/YYYY            
  --------------- ----------------------- --------------------- ----------

Source: Economic Times (Average week-end prices in the Delhi Wholesale
Market).

## Table 3: Wholesale Almond Kernel Prices (Rs./Kg.), Delhi Market 

+----------------------------------+----------------+------------------+
| ***Type (Origin)***              | ***2004/05***  | ***2003/04***    |
+----------------------------------+----------------+------------------+
| #### Californian Almonds         | 350-465        | 261-332          |
+----------------------------------+----------------+------------------+
| Mamra Almonds (Iran)             | 600-900        | 500-650          |
+----------------------------------+----------------+------------------+
| Qumi Almonds (Iran)              | 350-600        | 325-450          |
+----------------------------------+----------------+------------------+
| Gulbandi Almonds (Afghan)        | 325-430        | 280-325          |
+----------------------------------+----------------+------------------+

Source: Market sources.

## Table 4: Commodity, Almond, Import Trade Matrix

  ----------------------- ----------------------- ------------- -----------
  **Import Trade Matrix**                                       

  **Country**             India                                 

  **Commodity**           Almonds, Shelled Basis                

  Time Period             Sept-Aug                Units:        Metric tons

  Imports for:            2003                                  **2004**

  U.S.                    21440                   U.S.          23530

  Others                                          Others        

  Afghanistan             1536                    Afghanistan   1900

  Iran                    1180                    Iran          800

  Australia               368                     Australia     400

  Chile                   33                      Chile         150

                                                                 

  Total for Others        3117                                  3250

  Others not Listed       33                                    20

  Grand Total             24590                                 26800
  ----------------------- ----------------------- ------------- -----------

Source: Estimates derived from official GOI sources (2003/04), trade
sources (2004/05) and California Almond Board Statistics (2003/04 and
2004/05).

## Table 5: Commodity, Walnut, PSD Table

+-------------+----------+-----+----+-----+--------+-----+---------+
| **PSD       |          |     |    |     |        |     |         |
| Table**     |          |     |    |     |        |     |         |
+-------------+----------+-----+----+-----+--------+-----+---------+
| **Country** | ######   |     |    |     |        |     |         |
|             | ## India |     |    |     |        |     |         |
+-------------+----------+-----+----+-----+--------+-----+---------+
| **          | **Wa     |     |    |     | (HA)   |     |         |
| Commodity** | lnuts,** |     |    |     |        |     |         |
|             |          |     |    |     | (1000  |     |         |
|             | *        |     |    |     |        |     |         |
|             | *Inshell |     |    |     | TREE   |     |         |
|             | Basis**  |     |    |     | S)(MT) |     |         |
+-------------+----------+-----+----+-----+--------+-----+---------+
|             | 2004     | R   | 20 | Es  | 2006   | Fo  | UOM     |
|             |          | evi | 05 | tim |        | rec |         |
|             |          | sed |    | ate |        | ast |         |
+-------------+----------+-----+----+-----+--------+-----+---------+
|             | USDA     | P   | US | P   | USDA   | P   |         |
|             |          | ost | DA | ost |        | ost |         |
|             | Official |     |    |     | Of     |     |         |
|             |          | Es  | Of | Es  | ficial | Es  |         |
|             | \[Old\]  | tim | fi | tim |        | tim |         |
|             |          | ate | ci | ate | \      | ate |         |
|             |          |     | al |     | [Old\] |     |         |
|             |          | \   |    | \   |        | \   |         |
|             |          | [Ne | \  | [Ne |        | [Ne |         |
|             |          | w\] | [O | w\] |        | w\] |         |
|             |          |     | ld |     |        |     |         |
|             |          |     | \] |     |        |     |         |
+-------------+----------+-----+----+-----+--------+-----+---------+
| ######## M  |          | 1   |    | 1   |        | 1   | MM/YYYY |
| arket Year  |          | 0/2 |    | 0/2 |        | 0/2 |         |
|             |          | 004 |    | 005 |        | 006 |         |
| ###         |          |     |    |     |        |     |         |
| ##### Begin |          |     |    |     |        |     |         |
+-------------+----------+-----+----+-----+--------+-----+---------+
| Area        | 36600    | 36  | 3  | 36  | 0      | 36  | (HA)    |
| Planted     |          | 600 | 66 | 600 |        | 600 |         |
|             |          |     | 00 |     |        |     |         |
+-------------+----------+-----+----+-----+--------+-----+---------+
| Area        | 30500    | 30  | 3  | 30  | 0      | 30  | (HA)    |
| Harvested   |          | 800 | 08 | 800 |        | 800 |         |
|             |          |     | 00 |     |        |     |         |
+-------------+----------+-----+----+-----+--------+-----+---------+
| Bearing     | 1330     | 1   | 13 | 1   | 0      | 1   | (1000   |
| Trees       |          | 330 | 30 | 330 |        | 345 | TREES)  |
+-------------+----------+-----+----+-----+--------+-----+---------+
| Non-Bearing | 255      | 255 | 2  | 265 | 0      | 250 | (1000   |
| Trees       |          |     | 65 |     |        |     | TREES)  |
+-------------+----------+-----+----+-----+--------+-----+---------+
| Total Trees | 1585     | 1   | 15 | 1   | 0      | 1   | (1000   |
|             |          | 585 | 95 | 595 |        | 595 | TREES)  |
+-------------+----------+-----+----+-----+--------+-----+---------+
| Beginning   | 2050     | 2   | 25 | 1   | 2050   | 1   | (MT)    |
| Stocks      |          | 200 | 50 | 800 |        | 800 |         |
+-------------+----------+-----+----+-----+--------+-----+---------+
| Production  | 34000    | 31  | 3  | 32  | 0      | 34  | (MT)    |
|             |          | 000 | 15 | 000 |        | 000 |         |
|             |          |     | 00 |     |        |     |         |
+-------------+----------+-----+----+-----+--------+-----+---------+
| Imports     | 0        | 0   | 0  | 0   | 0      | 0   | (MT)    |
+-------------+----------+-----+----+-----+--------+-----+---------+
| **TOTAL     | *        | **3 | *  | **3 | **     | **3 | (MT)    |
| SUPPLY**    | *36050** | 320 | *3 | 380 | 2050** | 580 |         |
|             |          | 0** | 40 | 0** |        | 0** |         |
|             |          |     | 50 |     |        |     |         |
|             |          |     | ** |     |        |     |         |
+-------------+----------+-----+----+-----+--------+-----+---------+
| Exports     | 16500    | 14  | 1  | 14  | 0      | 15  | (MT)    |
|             |          | 400 | 50 | 000 |        | 400 |         |
|             |          |     | 00 |     |        |     |         |
+-------------+----------+-----+----+-----+--------+-----+---------+
| Domestic    | 17000    | 17  | 1  | 18  | 0      | 18  | (MT)    |
|             |          | 000 | 70 | 000 |        | 500 |         |
| Consumption |          |     | 00 |     |        |     |         |
+-------------+----------+-----+----+-----+--------+-----+---------+
| Ending      | 2550     | 1   | 20 | 1   | 0      | 1   | (MT)    |
| Stocks      |          | 800 | 50 | 800 |        | 900 |         |
+-------------+----------+-----+----+-----+--------+-----+---------+
| **TOTAL**   | *        | **3 | *  | **3 | **0**  | **3 | (MT)    |
|             | *36050** | 320 | *3 | 380 |        | 580 |         |
| **DIS       |          | 0** | 40 | 0** |        | 0** |         |
| TRIBUTION** |          |     | 50 |     |        |     |         |
|             |          |     | ** |     |        |     |         |
+-------------+----------+-----+----+-----+--------+-----+---------+

Note: The PSD is based on discussions with major walnut traders in
Delhi.

## Table 6: Commodity, Walnut, Price Table

  --------------- ---------------------- --------------------- -----------
  **Prices                                                     
  Table**                                                      

  **Country**     India                                        

  **Commodity**   Walnuts, Inshell Basis                       

  Prices in       Rupees                 per uom               100 Kg

                                                               

  Year            2004                   2005                  \% Change

  Jan             9250                   14000                 51%

  Feb             10000                  13000                 30%

  Mar             10000                  11200                 12%

  Apr             8000                   10000                 25%

  May             8000                   11850                 48%

  Jun             8000                   13200                 65%

  Jul             8000                   13600                 70%

  Aug             8000                                         -100%

  Sep             8000                                         -100%

  Oct             8400                                         -100%

  Nov             13000                                        -100%

  Dec             14000                                        -100%

                                                               

  Exchange Rate   44.35                  Local Currency/US \$  

  Date of Quote   08/11/05               MM/DD/YYYY            
  --------------- ---------------------- --------------------- -----------

Source: Economic Times (Average week-end prices in the Delhi Wholesale
Market).

## Table 7: Walnut Prices during 2003/04

  ------------------------------ ----------- ------------- ------------- -------------
  **PRICE**                      **UNITS**   **2004/05**   **2003/04**   **2002/03**

  ***Wholesale Price of FAQ      (Rs./Kg)    55-60         48-55         50-60
  Walnut***                                                              

  ***Export Price (C&F           US\$/MT                                 
  Europe)***                                                             

  1\. Light Halves               -do-        4500-6500     4150-4850     3950-4900

  2\. Light Broken/Amber Halves  -do-        3500-4800     2950-3650     2850-3700

  3\. Amber Broken               -do-        2800-4250     2750-3100     2600-3300
  ------------------------------ ----------- ------------- ------------- -------------

Source: Market Sources.

## Table 8: Commodity, Walnut, Export Trade Matrix

  ---------------------- ---------------------- ------------- -----------
  **Export Trade                                              
  Matrix**                                                    

  **Country**            India                                

  **Commodity**          Walnuts, Inshell Basis               

  Time Period            April-March            Units:        Metric Tons

  Exports for:           2003                                 **2004**

  U.S.                   195                    U.S.          140

  Others                                        Others        

  Spain                  4490                   Spain         4125

  Germany                1800                   Germany       1750

  U.K.                   1300                   Egypt         1100

  Egypt                  915                    U.K.          1000

  Greece                 815                    Greece        800

  Netherland             814                    Denmark       800

  Denmark                695                    Netherland    750

  France                 568                    France        700

  Taiwan                 530                    Taiwan        400

  Kuwait                 530                    New Zealand   400

  Total for Others       12457                                11825

  Others not Listed      2698                                 2435

  Grand Total            15350                                14400
  ---------------------- ---------------------- ------------- -----------

Note: MY 2003 refer to Indian Fiscal Year (IFY) 2003/04 (April-March) as
most exports happen during October 2003 through March 2004.

Source: MY 2003 - Export figures from DGCIS, Ministry of Commerce.

MY 2004 - Provisional Trade Estimates.

## Table 9: Almonds and Walnuts Tariffs

+----------+-------------+------+--------+----------+-----------------+
| **Com    | **De        | **   | **B    | **Edu    | **Total**       |
| modity** | scription** | Impo | asic** | cation** |                 |
|          |             | rt** |        |          | **Applicable    |
| **Code** |             |      | **Du   | **Cess** | Duty /5**       |
|          |             | **   | ty/2** |          |                 |
|          |             | Poli |        |          |                 |
|          |             | cy** |        |          |                 |
+----------+-------------+------+--------+----------+-----------------+
| HC       | Almonds     | OGL  | Rs     | Exempted | Rs 35/kg        |
| 0802.11  | Inshell     | /1   | 35/kg  | /3       |                 |
+----------+-------------+------+--------+----------+-----------------+
| HC       | Almond      | OGL  | Rs     | 2%       | Rs. 66.3/kg     |
| 0802.12  | Kernel      | /1   | 65/kg  |          |                 |
+----------+-------------+------+--------+----------+-----------------+
| HC       | Walnut      | OGL  | 30/20% | 2%       | 30.6/20.4% /4   |
| 0802.31  | InShell     | /1   | /4     |          |                 |
+----------+-------------+------+--------+----------+-----------------+
| HC       | Walnut      | OGL  | 30/20% | 2%       | 30.6/20.4% /4   |
| 0802.32  | Shelled     | /1   | /4     |          |                 |
+----------+-------------+------+--------+----------+-----------------+

Notes on Tariff:

/1: OGL (Open General License) -- no quantitative restrictions.

/2: Under the IAPTA, a tariff concession of 50 percent applied on the
basic import duty for these goods if imported from Afghanistan.

/3: Almond in-shell exempted from the education cess.

/4: Preferential duty for SAARC countries (Pakistan, Bangladesh, Sri
Lanka, Nepal, Maldives and Bhutan).

/5: Method for computing Total applicable duty:

A: CIF Value of Good

B: Basic Duty = Basic Duty Rate \* A

C: Education Cess (EC) = EC Rate \* B

Total Applicable Duty = B+C

**Sanitary Conditions:** On March 21, 2005, the Department of Health,
Ministry of Health and Family Welfare, Government of India (GOI), issued
a final Gazette notification under the Prevention of Food Adulteration
Act (PFA), which establishes following new standards for dry fruits and
nuts (including almonds and walnuts):

1\. Extraneous vegetable matter (m/m) Not more than 1.0 percent

2\. Damaged/discolored units (m/m) Not more than 2.0 percent

3\. Acidity of extracted fat

expressed as Oleic Acid Not more than 1.25 percent

Where;

> m/m = mass/mass
>
> Extraneous vegetable matter: stalks, pieces of shells, pits, fiber,
> peel, etc.
>
> Damaged/discolored: units affected by sunburn, scars, mechanical
> injury, discoloration, and insects

The link to the final gazette notification is:
[www.mohfw.nic.in/F18521032005.pdf](http://www.mohfw.nic.in/F18521032005.pdf).
You may also refer to our FAIRS report 'Prevention of Food Adulteration
(second amendment) Rules, 2005' (IN5058).