South Africa warns India tariff could squeeze exports

Fruit marketer Tru-Cape is sounding the alarm on the 50 percent tariff on the country’s apple exports to one of its key markets: India. The firm warned that the sector risks losing competitiveness unless improved trade access and preferential tariff arrangements are secured.

Industry representatives raised the issue during a recent visit to India, where South African agricultural stakeholders met with fruit importers and distributors in Mumbai, including NGK Trading, a major importer of South African fruit and a long-standing customer of Tru-Cape apples and pears.

India has become an increasingly important destination for South African apple and pear exports, particularly for high-colored Gala varieties. Tru-Cape shipped more than 650,000 MK6-equivalent cartons of apples and pears to India in 2025, according to the company.

NGK Trading imports about 300 containers of South African fruit each year, including approximately 220 containers of apples and pears. According to owner Gagan Khosla, South African apples have established a strong position in the market.

"South African apples have established themselves well in India because of their quality, consistency, and value for money," said Khosla. "Royal Gala remains extremely popular, while Flash Gala continues to grow year after year as awareness of the variety increases."

India tariff changes threaten competitive position

Industry stakeholders say that the quality advantage could fall short as competing suppliers gain preferential access through improved trade agreements.

According to Khosla, tariffs on apples imported from Europe will fall to 20 percent, while New Zealand will benefit from a 25 percent tariff beginning in January 2027. Chile is also negotiating to reduce tariffs on its apple exports.

"India represents one of the most exciting growth opportunities for the South African apple and pear industry, but we are increasingly concerned about our future competitiveness in this market," said Roelf Pienaar, managing director of Tru-Cape Fruit Marketing.

Riaan Ferreira, director of GF Marketing, Tru-Cape’s marketing partner in India and several other export markets, said the evolving tariff structure poses an increasing challenge.

"South Africa needs a broader and more preferential trade agreement if we want to maintain and grow our position in the market," said Ferreira.

India’s expanding middle class, growing demand for imported premium fruit, and established consumer acceptance of Gala apples continue to make the market strategically important for South African exporters, according to industry stakeholders.

"The opportunity is there," said Pienaar. "The priority now is ensuring South African exporters can compete on equal terms with their international competitors through improved trade access and preferential tariff arrangements."

*All images are referential.

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