The government may also review the minimum export price fixed for honey whether to reduce it or completely abolish after the US tariff
India, the world’s largest exporter of honey to the US, may face a duty disadvantage, potentially allowing other competing countries such as Argentina, New Zealand and the UK to take advantage, since China, the second largest exporter too, has a higher tariff. However, the government is confident of maintaining the lead since India has a distinct advantage in quality while exporters are pinning hopes on a possible revision of anti-dumping duty.
“Our natural honey is based on mustard crop from which the honey bees make the hives. No other country has this type which also changes as per climate there, making it acceptable,” said a senior government official. The government may also review the minimum export price fixed for honey whether to reduce it or completely abolish after the US tariff, the sources said.
Two issues
Out of the total export of $185 million of natural honey in the 2023 calendar year by India, $161.08 million worth of the produce was shipped to the US. Argentina was at second position with an export value of $133.81 million, according to data compiled by APEDA.
“There are two issues. One is the current anti-dumping duty of 5.8 per cent on Indian honey. Secondly, the new reciprocal country-specific tariff that the US has imposed, which everyone will be paying. Clarity is yet to come, we will know by next week what the real tariff rates will be. And the final anti-dumping duty is likely to be announced next week,” Kejriwal Bee Care India Managing Director Prakash Kejriwal told businessline. Kejriwal Bee Care is one of the leading exporters of natural honey to the US.
In 2022, the US has clamped an anti-dumping duty on three Indian companies – 6.24 per cent on one exporter and 5.87 per cent on other exporters. But, the anti-dumping duty on Vietnam is 60.03 per cent for all of its exporting firms, except two, where it is 58.74 per cent and 61.27 per cent, respectively.
The reciprocal tariff rate for India currently stands at 26 per cent, while it is 46 per cent for Vietnam and 10 per cent for Argentina. Some exporters believe that Argentina may have some advantage over India as its anti-dumping duty and tariff put together will be about 27 per cent.
Levy may drop
The anti-dumping duty on honey exporters of Argentina is varied – for NEXCO S.A it is 9.17 per cent, Asociación De Cooperativas Argentinas Cooperativa Limitada 24.67, for Industrias Haedo S.A and Compañía Inversora Platense S.A it is 49.44 per cent and for all others 16.92 per cent.
Kejriwal said: “For Period of Review 1 (POR 1), final anti-dumping duty rates are to be announced on April 8 or 9. The final rate for India is expected to come down to 0.6 per cent. For Vietnam, it is expected to double to 120 per cent, as per the preliminary rates announced in September 2024. If the rates remain like that, then India will in a favourable position. If that varies, and Vietnam’s final anti-dumping duty lands up close to India, then it would be very detrimental for Indian exporters,” Kejriwal pointed out.
Industry experts said Vietnam is able to even absorb 50-60 per cent lower price as compared to India due to its cost of production and labour costs. The US, the largest consumer of honey in the world, needs to import around two-third of its total domestic requirement of around 220,000 tonnes per year.
India, also the world’s fourth largest exporter of honey, has wider scope to expand its footprint in other countries since the global trade is about $ 2.33 billion. For 26 countries (excluding the US), where India is among their top 5 sourcing destinations, the total value of their import was $ 94.78 million out of which India had a share of $ 16.47 million (or 17.38 per cent).
Published on April 4, 2025
