India continues to be one of the strategic markets for the Chilean walnut industry. This was confirmed on-site by representatives of exporting companies who recently traveled to the Asian country, where they met with clients and other industry stakeholders to gain firsthand knowledge of demand trends, marketing conditions, and the main challenges currently facing the walnut business. The experience allowed them to assess both the opportunities this market offers and the challenges Chilean walnuts face in continuing to grow.

“Chilean walnuts are in a favorable position compared to the supply from other countries, mainly due to the quality differences between the various supplying countries. Indian customers highly value quality, so Chilean walnuts are always a step ahead of the competition,” highlighted Francisco Moreno, Export Manager of Quelen Fruit, one of the exporters who traveled to India.

This appreciation, however, coexists with a market that is highly price-sensitive and a barrier that limits the growth of Chilean exports: the 100% tariff currently imposed on Chilean walnuts entering India.

From Chilenut, its president, Juan Esteban Rodríguez, states that advancing trade negotiations between the two countries is a priority for the sector and that the process must be expedited. “India is a strategic market for Chilean walnuts, and we have a huge opportunity that we are not yet fully capitalizing on. A reduction in tariffs would allow our walnuts to reach more competitive prices and make them accessible to more consumers. We need to move forward with these negotiations and create better conditions so that the potential of this market translates into concrete opportunities for the entire industry,” Rodríguez points out.

This proposal takes on particular relevance given the competitive landscape Chile currently faces. While Chilean walnuts enter the formal Indian market facing a 100% tariff, China has increased its presence as a competitor—even through informal channels—offering large volumes and lower prices.

For Thomas Jackson, commercial manager of Vitakai S.A., this situation is increasingly shaping the competitive landscape. “Chile can compete very well in terms of quality, but when the price gap becomes too large, it's difficult for those attributes to be enough to compensate,” he explains.

A tariff reduction would allow, precisely, for narrowing that gap. By reducing import costs, Chilean walnuts could reach a more competitive price for the end consumer, expanding the market beyond those currently willing to pay a premium for quality. “Chile has already demonstrated that it can compete in India on quality. The challenge now is to achieve access conditions that allow us to compete on price as well,” Jackson adds.

India consumes between 35 and 40 million kilos of walnuts annually and, depending on the volume available in Chile, can represent between 20% and 25% of national exports.

This is confirmed by Antonio Correa, Commercial Director of Exportadora Melifen: “Chile supplies approximately half of the walnuts consumed in India, while India represents the main market for the Chilean industry. The Indian market is especially attractive both for its volume and its preferences,” he notes, highlighting the value placed on attributes such as the whiteness and freshness of Chilean walnuts.

The industry expects that improved market access will allow for a considerable increase in that volume. “If the tariff were reduced or eliminated, we could offer a much more attractive price to the end consumer, which would significantly increase demand,” Correa maintains.

The effect could also extend to other markets. Increased consumption in India would generate greater demand for Chilean walnuts and contribute to better trading conditions for domestic producers.

The trip also allowed for observation of differences between the country's main commercial centers. While exporters in Mumbai encountered more concentrated buyers and greater price pressure, Delhi presented a market with a larger number of clients and more sales opportunities.

For Rodrigo Plass, general manager of Exportadora Growex, the observed scenario was marked by high stock levels and strong price pressure. “Chilean walnuts are of very good quality and highly regarded, but unfortunately, in the end, price dictates the outcome,” Plass maintains. In their view, improved market access conditions would allow for more balanced competition and would ultimately benefit domestic producers as well.

For Chilenut, the challenge now is to leverage the position Chile has already established in India and create the conditions to further strengthen it. The industry has a fruit recognized for its quality and existing demand; the outstanding issue is improving market access conditions to be able to compete on price as well.

Negotiations between Chile and India to move toward a Comprehensive Economic Partnership Agreement (CEPA)—an initiative led by the Undersecretariat of International Economic Relations (SUBREI)—are ongoing. For the association that brings together walnut producers and exporters, accelerating this process and achieving tariff reductions represents a concrete opportunity to increase consumption of Chilean walnuts, strengthen their competitiveness against other origins, and generate better prospects for the entire production chain.