India has granted quota-based duty concessions to New Zealand for apples, kiwifruit and Manuka honey, linking market access to agriculture productivity action plans monitored by a joint council.
India has granted quota-based duty concessions to New Zealand for apples, kiwifruit, and Manuka honey under the free trade agreement, linking these concessions to the implementation of agriculture productivity action plans committed by New Zealand. The delivery and progress of these plans will be overseen by a Joint Agriculture Productivity Council (JAPC).
According to the agreement, the approach is designed to balance enhanced market access with the protection of sensitive domestic agricultural sectors. Speaking on the conclusion of the pact, Union Minister for Commerce and Industry Piyush Goyal said the agreement focuses on “building trade around people” by creating opportunities for farmers, entrepreneurs, students, women, and innovators. He noted that by boosting yields and farmer incomes, the agreement promotes modern agricultural productivity, opens regional opportunities for Indian businesses through integrated exports, and enables Indian youth to learn, work, and grow on a global platform.
As part of the cooperation framework, New Zealand has committed to focused action plans for kiwifruit, apples, and honey aimed at improving productivity, quality, and sectoral capabilities in India. These initiatives include the establishment of centres of excellence, access to improved planting material, capacity building for growers, technical support for orchard management, post-harvest handling, supply chain development, and enhanced food safety standards. Specific projects targeting premium apple cultivation and sustainable beekeeping practices are expected to raise both production volumes and quality benchmarks in India.
The commerce ministry clarified that all tariff rate quotas (TRQs) for apples, kiwifruit, and Manuka honey are strictly linked to the delivery of these agriculture productivity action plans and will be monitored by the JAPC. New Zealand has stated that it is the first country to receive duty concessions for its apples under such an arrangement with India.
Currently, India levies a 50 per cent import duty on apples. Under the agreement, duty concessions will be provided to New Zealand apples within a specified quota and subject to a minimum import price (MIP), in order to safeguard the interests of domestic apple growers. At present, India imports about 31,392.6 tonnes of apples from New Zealand, valued at USD 32.4 million, compared with total apple imports of 519,651.8 tonnes worth USD 424.6 million.
Under the pact, import duty concessions will apply to 32,500 tonnes of New Zealand apples in the first year. This quota will gradually increase to 45,000 tonnes by the sixth year, with imports within the quota subject to a 25 per cent duty and an MIP of USD 1.25 per kg. Imports beyond the quota will continue to attract a 50 per cent duty.
Overall, market access for selected agricultural products, apples, kiwifruit, Manuka honey, and albumins from New Zealand will be managed through a TRQ system incorporating MIP and other safeguards. This framework aims to ensure quality imports and consumer choice while maintaining adequate protection for India’s domestic farming sector.
Establishment of dedicated Agri-Technology Action Plans on kiwifruit, apples and honey, focus on productivity enhancement, technology, research collaboration, quality improvement and value-chain development, to strengthen domestic capabilities and supporting income growth for Indian farmers.
The cooperation includes the establishment of Centres of Excellence, improved planting material, capacity building for growers and technical support for orchard management, post-harvest practices, supply chain performance, and food safety. Projects for apple cultivators and sustainable beekeeping practices will enhance production and quality standards.
The Agreement significantly strengthens the investment partnership between the two countries. New Zealand has committed to facilitate investments of USD 20 billion into India over the next fifteen years, thereby supporting manufacturing, infrastructure, services, innovation and employment under India’s Make in India vision. Indian enterprises are also expected to benefit from their presence in New Zealand and access the wider Pacific Island markets.
Deal Raises Fears Among Apple Growers
However, India’s decision sparked concern among apple growers in Jammu and Kashmir and Himachal Pradesh, who fear the move could further strain an industry already reeling from losses due to logistical disruptions and enhanced input costs.
In a statement, the Apple Farmers’ Federation of India (AFFI) said apple growers in hill States are already under pressure from rising input costs, climate-related losses and weak infrastructure, and warned that cheaper imports could destabilise prices during the domestic marketing season.
“The tariff reduction will expose Indian apple growers to intensified competition at a time when farmgate prices are under stress,” said Mohammad Yousuf Tarigami, senior CPI( M) leader and convenor of AFFI, and Rakesh Singha, its co-convenor in a joint statement.
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