A new requirement imposed by the Indian government on imported produce items has been causing challenges for apple exporters in Washington. “A sizeable list of produce items now requires a non-GMO certificate, and apples are one of the items on the list,” says Steve Reinholt, Export Sales Manager at Starr Ranch Growers.
Shipments to India continue, impact is minimal
While the new requirement is bringing a new hurdle for exporters, it’s not preventing them from continuing their shipments. Reinholt explains: “It is not a simple process and will require additional processes and documentation prior to shipping. The issue was larger than any one company because the requirement from India was to have all shipments certified non-GMO by an official body – and here in the US we didn’t have anyone who did that sort of certification. Fortunately, the USDA and the WSDA have both stepped up and developed paperwork that will meet India’s requirements, as long as the grower and packer can produce the correct verification.”
Fortunately, the new requirement came during a smaller than usual season, which means that the overall impact has been minimal, says Reinholt. “Additionally, the red delicious variety has historically been the preferred apple in India and the production of reds has dropped off significantly over the past few years. Therefore, the overall impact has been mitigated to a degree. However, when we have the next large crop, we will need all markets open and available to us to profitably market our products. So, ideally, we will be able to get this requirement removed for future seasons,” he says.
Reinholt explains that the requirement of a non-GMO certificate for apples is not logical in the first place: “All apples grown and packed for fresh consumption in the Pacific Northwest are non-GMO, and the variety of apples that India buys don’t even have a GMO variant. I believe this new requirement is a classic case of a bureaucracy throwing up barriers to free trade.”
Tariffs continue to be biggest barrier for exporters
Despite this new requirement and the challenges that have resulted from it, the biggest barrier for US apple exporters continues to be the high tariffs in India. “In the past, India has been a big market for Starr Ranch, as well as for the rest of the apple industry. That changed a couple of years ago when a retaliatory duty of 20% was put on many products, including apples, from the US. Overall volume has dropped off drastically, and the effects of the retaliatory tariffs have a far greater impact on our ability to sell our apples profitably in India than this new non-GMO requirement. Still, India does remain an important trading partner,” Reinholt concludes.
