India and New Zealand have signed a Free Trade Agreement (FTA) that includes special duty reductions for certain agricultural products. These benefits for New Zealand’s apples, kiwifruit, and Manuka honey are directly linked to New Zealand’s commitment to improving agricultural productivity in India. This means the duty concessions will only be granted if New Zealand successfully implements agreed-upon action plans.
A Joint Agriculture Productivity Council (JAPC) will be formed to monitor the progress of these plans. This council will ensure that the agreement balances offering market access to New Zealand with protecting India’s own sensitive farming sectors. The goal is to boost productivity, improve the quality of products, and strengthen the capabilities within India’s agricultural industry.
New Zealand has agreed to focus its efforts on kiwifruit, apples, and honey. This cooperation will involve setting up centres of excellence, providing better quality seeds and plants, training Indian farmers, and offering technical support. Support will also cover orchard management, how to handle produce after harvest, improving supply chains, and ensuring food safety standards.
Specific projects will focus on premium apple cultivation and sustainable beekeeping. These initiatives are designed to increase the production and quality of apples and honey in India. As stated by the commerce ministry, “All tariff rate quotas for apples, kiwifruit and Manuka are linked to delivery on agriculture productivity action plans and monitored by a JAPC.”
New Zealand has highlighted that it is the first country to receive duty concessions for its apples under this specific trade pact. Currently, India imposes a 50% import duty on apples. Under the new agreement, India will provide duty concessions to New Zealand, but within a set quota and with a minimum import price (MIP). This is to safeguard the interests of local apple farmers.
Currently, India imports about 31,392.6 tonnes of apples from New Zealand each year, valued at USD 32.4 million. This is a small part of India’s total apple imports, which reach 519,651.8 tonnes worth USD 424.6 million.
Under the FTA, in the first year, New Zealand will benefit from duty concessions on 32,500 tonnes of apples. This quota will increase to 45,000 tonnes by the sixth year. For these quantities, the duty will be 25%, and there will be a minimum import price of USD 1.25 per kilogram. Any apple imports exceeding this quota will face the standard 50% import duty.
The agreement uses a tariff rate quota (TRQ) system for apples, kiwifruit, Manuka honey, and albumins from New Zealand. This system, along with MIP and other protective measures, aims to ensure that imports are of good quality and offer consumers more choices, while crucially protecting Indian farmers from unfair competition.