Export of Walnuts from India.

Introduction:

India is emerging as a significant player in the global walnut trade, both in terms of production and export. Walnuts are a nutritious and highly demanded nut, used for snacking, cooking, and in various processed foods. The walnut export sector is primarily driven by the states of Jammu & Kashmir and Himachal Pradesh, which produce a large share of the country's walnuts. The global demand for walnuts is growing, with India focusing on quality production and expanding export markets.

HSN Code for Walnuts:

• HSN Code for Walnuts (in shell): 0802 31
• HSN Code for Walnuts (shelled): 0802 32

These codes are used for tariff classification and international trade regulation purposes.

Climate Requirement for Producing Walnuts:

• Temperature: Walnuts thrive in temperate climates with cool winters and moderate summers. The ideal temperature range for walnut cultivation is between 15°C to 25°C.
• Chill Hours: Walnuts require about 800 to 1,500 chill hours (cold temperatures during winter) for the proper dormancy cycle.
• Rainfall: Well-drained soil with an annual rainfall between 600mm to 1,200mm is ideal for walnut trees.
• Soil: Walnuts grow best in deep, well-drained soils that are rich in organic matter. The soil pH should be between 6.0 and 7.5.

Producing States:

• Jammu & Kashmir: The largest producer of walnuts in India, particularly in the regions of the Kashmir Valley.
• Himachal Pradesh: Another significant producer, with walnut cultivation spread across the higher altitudes of the state.
• Uttarakhand: Increasing walnut cultivation in the higher altitude areas of the state.
• Arunachal Pradesh: A growing area for walnut production.
• Nagaland: Also producing a smaller share of walnuts.

Nutrient Facts of Walnuts (per 100g):

• Calories: 654 kcal
• Protein: 15.2g
• Fat: 65.2g (mostly unsaturated fats, including Omega-3 fatty acids)
• Carbohydrates: 13.7g
• Fiber: 6.7g
• Vitamins: High in Vitamin E (0.7 mg) and B-vitamins, including Folate (98 µg).
• Minerals: Rich in Magnesium (158 mg), Phosphorus (346 mg), and Copper (1.6 mg).
• Antioxidants: Walnuts are rich in antioxidants, including polyphenols, which help reduce inflammation and fight oxidative stress.

Destination Countries:

India exports walnuts to several countries globally, including:

• United States: The largest importer of walnuts globally.
• United Kingdom: A key market for Indian walnuts, especially shelled walnuts.
• United Arab Emirates (UAE): A major re-export hub for Middle Eastern and African markets.
• Germany: One of the primary European importers of walnuts.
• Saudi Arabia: Another key market in the Middle East.
• Russia: Growing interest in walnut imports.
• China: An emerging market for walnuts, despite being a producer of its own.

Export Performance:

• Growth: India's walnut export performance has seen a steady increase in recent years. The export value of walnuts from India has grown due to increased production, quality control, and the expanding international market.
• Volume: In 2021, India exported around 20,000 metric tons of walnuts, with a significant portion going to countries like the United States, UAE, and the European Union.
• Trends: The demand for organic walnuts and value-added walnut products (such as walnut oil and walnut snacks) is driving the export market.

Export Incentives:

1. RODTEP (Remission of Duties and Taxes on Export Products):
   • This scheme is designed to refund duties and taxes on exported goods that were not refunded under other schemes. It helps reduce the cost burden on exporters, making them more competitive in international markets.
2. Duty Drawback:
   • Indian walnut exporters are eligible for duty drawback under the Customs and Excise rules. This allows the refund of customs duties paid on raw materials used in the export process.
3. MAI (Market Access Initiative):
   • The MAI scheme supports market expansion by funding various promotional activities, such as trade fairs, market studies, and promotional events in international markets.
4. Interest Equalization Scheme:
   • This scheme provides an interest subsidy to exporters of agricultural and processed food products, including walnuts, to reduce the financial burden of credit and make products more competitive globally.

Export Promotion Councils:

• APEDA (Agricultural and Processed Food Products Export Development Authority): APEDA is the key body that facilitates walnut exports by providing market information, technical support, and promotional activities.
• Federation of Indian Export Organizations (FIEO): FIEO helps Indian walnut exporters by providing insights into international trade practices, market trends, and buyer contacts.

Government Initiatives:

• National Horticulture Mission (NHM): The NHM aims to promote the production of fruits like walnuts, with an emphasis on improving yields and supporting the export market.
• Pradhan Mantri Krishi Sinchayee Yojana (PMKSY): This initiative encourages the efficient use of water resources for agriculture, which helps walnut farmers in states like Jammu & Kashmir and Himachal Pradesh.
• Cluster Development Programs: The government has launched various cluster development schemes to improve walnut production in specific regions by providing technical support and facilitating group marketing.

Value-Added Products:

• Walnut Oil: Extracted from the nuts, walnut oil is used in cooking, cosmetics, and healthcare.
• Walnut Powder: Used in baking, food processing, and as a dietary supplement.
• Walnut Snacks: Packaged walnut snacks and mixes are becoming popular in global markets.
• Walnut Butter: An alternative to peanut butter, often used in healthy diets.

Governing Body:

• The Directorate of Marketing & Inspection (DMI): The DMI, under the Ministry of Agriculture, is responsible for regulating the quality of walnut exports, ensuring compliance with international standards.
• Food Safety and Standards Authority of India (FSSAI): FSSAI ensures the safety and quality of food products, including walnuts, for export.

Challenges and Way Forward:

• Challenges:
  • Pest and Disease Management: Walnut production faces challenges like fungal diseases and pests that impact the quality and yield of the crop.
  • Infrastructure Issues: Lack of proper storage and processing facilities can lead to post-harvest losses and reduce export potential.
  • Competition: India faces stiff competition from other walnut-producing countries like the United States, China, and Iran.
  • Market Awareness: Walnut producers and exporters need to increase awareness of Indian walnuts in international markets, focusing on quality and organic produce.
• Way Forward:
  • Technological Advancements: Implementing new agricultural techniques, pest management systems, and efficient post-harvest processing will help enhance production and quality.
  • Expanding Market Access: India needs to strengthen its presence in emerging markets such as Southeast Asia, Africa, and Latin America.
  • Diversifying Products: Focusing on value-added walnut products can help Indian exporters tap into niche markets that are willing to pay premium prices.
  • Strengthening Infrastructure: Building better storage, packaging, and logistics infrastructure will help reduce post-harvest losses and ensure higher quality exports.

Conclusions: India has the potential to become a global leader in walnut exports, leveraging its favorable climatic conditions, growing production, and government incentives. However, addressing challenges related to infrastructure, pest control, and market diversification will be crucial. With the right support, both from the government and industry, India’s walnut export sector can achieve significant growth, contributing to the global supply of this nutritious and in-demand product.

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