Ministry pledges support for peanuts amid zero-tariff U.S. imports

Taipei, April 29 (CNA) Agriculture Minister Chen Junne-jih (陳駿季) on Wednesday pledged support for domestic peanut farmers amid concerns over the impact of a planned zero-tariff policy on U.S. imports.

The policy, part of the Taiwan-U.S. Agreement on Reciprocal Trade (ART), has yet to take effect but has raised fears of increased competition.

Speaking ahead of a legislative hearing, Chen said the government would promote Taiwanese peanuts by highlighting their distinct qualities and strengthening marketing efforts.

He said local peanuts account for about 75 percent of the domestic market and stressed that tariff-free imports would not mean abandoning local producers.

At the Legislature, Kuomintang (KMT) lawmaker Chang Chia-chun (張嘉郡) said domestic peanuts cost roughly three times more than U.S. imports and raised concerns about "origin washing."

Chen said processed products would be required to clearly indicate their country of origin.

He added that the government is purchasing fresh peanut pods and setting up drying centers to help reduce costs.

Agriculture Deputy Minister Hu Jong-i (胡忠一) said around 20-30 percent of domestic production could be affected.

He said imported U.S. peanuts cost significantly less than local products. However, Taiwan relies on imports for only 30 percent of consumption.

The Ministry of Agriculture said price is not the only factor in agricultural sales, citing quality and consumer preferences.

Also on Wednesday, the ruling Democratic Progressive Party (DPP) caucus said the ART could affect some industries despite its broader benefits to Taiwan.

DPP caucus chief Chuang Jui-hsiung (莊瑞雄) said additional support for peanut farmers would be needed, noting the Cabinet has set up a NT$30 billion (US$950 million) agricultural stabilization fund.

According to Ministry of Agriculture (MOA) data, most peanuts are grown in Changhua and Yunlin counties, with cultivated area shrinking from about 19,000 hectares in 2020 to 15,000 hectares in 2025.

Currently, most imported peanuts come from India, Argentina and Brazil, with U.S. imports accounting for less than 1 percent.