India links duty concessions on NZ apples, kiwifruit to agri action plans

Quota-based duty concessions granted by India to New Zealand for apples, kiwifruit, and Manuka honey are linked to the delivery of agriculture productivity action plans committed by the island country under the free trade agreement.

The implementation of the plans will be monitored by a Joint Agriculture Productivity Council (JAPC).

According to the pact, the move is aimed at balancing market access with protection of sensitive domestic agricultural sectors.

New Zealand has agreed on focused action plans for kiwifruit, apples, and honey to improve productivity, quality, and sectoral capabilities in India.

The cooperation includes the establishment of centres of excellence, improved planting material, capacity building for growers, technical support for orchard management, post-harvest practices, supply chains, and food safety.

Projects for premium apple cultivators and sustainable beekeeping practices will enhance production and quality standards in India.

"All tariff rate quotas for apples, kiwifruit and Manuka are linked to delivery on agriculture productivity action plans and monitored by a JAPC," the commerce ministry said.

New Zealand has said it has become the "first" country to get duty concessions for its apples under the pact.

At present, India has a 50 per cent import duty on apples. Under the agreement, India is giving duty concessions to apples with a quota and a minimum import price (MIP) in order to protect the interest of domestic farmers.

At present, India's annual apple imports from New Zealand is at 31,392.6 tonnes (MT) worth $32.4 million against the country's total apple imports of 519,651.8 MT ($424.6 million).

In the agreement, import duty concessions will be given to New Zealand on 32,500 MT in the first year of the pact. The quota will be increased to 45,000 MT in the sixth year at 25 per cent duty and MIP of $1.25/kg. Beyond this quota, a 50 per cent duty will come into force.

As per the pact, market access for the selected agricultural products (apples, kiwifruit, Manuka honey) and albumins from New Zealand will be managed through a tariff rate quota (TRQ) system with MIP and other safeguards, ensuring quality imports, consumer choice while protecting domestic farmers.