India's New Zealand Trade Deal: Apples at 25% Duty, Kiwifruit Duty-Free
India's free trade agreement with New Zealand, effective October 20, introduces new import quotas for apples and kiwifruit, with significant implications for the agricultural sector.
Apples will incur a 25% duty with a quota of 35,000 tonnes starting in 2027.
Kiwifruit will be imported duty-free, beginning with an 8,000-tonne quota in 2027.
Manuka honey and albumins will have first-year quotas, with specific CIF value requirements.
India's free trade agreement (FTA) with New Zealand is set to take effect on October 20, 2026, but the new import quotas for apples and kiwifruit will only be available starting next year. According to the Directorate General of Foreign Trade (DGFT), the first-year quota for both fruits is set at zero, meaning that importers will not be able to benefit from the new quota-based duty reductions during the remainder of 2026.
The DGFT's announcement on October 17 outlines the import duties, quantities, and eligibility conditions for various products under the India-New Zealand FTA, including apples, kiwifruit, Manuka honey, and albumins. For apples, the agreement allows for 35,000 tonnes of imports from New Zealand at a reduced duty of 25% in 2027, a significant decrease from the current 50% duty. The quota is expected to gradually increase over the following years, reaching 45,000 tonnes annually by 2031.
Kiwifruit imports will enjoy a more favorable arrangement, qualifying for zero customs duty under the quota system, provided they meet a minimum CIF value of $1.80 per kg. The initial quota for kiwifruit will start at 8,000 tonnes in 2027 and will progressively increase to 15,000 tonnes by 2031. The import window for kiwifruit will extend from April 1 to October 15 each year, allowing for a more extended period of market access.
In contrast to apples and kiwifruit, Manuka honey and albumins will have concessional quotas available in the first year. India has approved a quota of 40 tonnes for New Zealand-certified Manuka honey in 2026, with the limit increasing to 200 tonnes from 2027. The honey must meet specific CIF value criteria, while albumins will have a first-year quota of 200 tonnes at an 11% duty, rising to 3,000 tonnes annually by 2030.
The quota allocation process will involve New Zealand issuing export certificates to its producers, detailing the product and quantity. Indian importers must then apply for authorization through the DGFT, referencing these certificates. The quota system aims to balance market access for New Zealand with protective measures for Indian agricultural producers, ensuring that sensitive sectors are safeguarded while allowing for increased trade opportunities.
