India-New Zealand FTA: Concessions on apple, kiwi and manuka honey linked to agricultural productivity, ensuring protection of domestic farmers

New Delhi. India has linked the quota-based duty concessions given to New Zealand on apples, kiwi fruit and Manuka honey under the Free Trade Agreement (FTA) with the implementation of agricultural productivity action plans to be monitored by the ‘Joint Agricultural Productivity Council’ (JAPC).

The Commerce Ministry has said that this arrangement is aimed at maintaining a balance between market access and protection of sensitive areas of domestic agriculture. Under this agreement, New Zealand has agreed to targeted action plans to improve the productivity, quality and capabilities of the apple, kiwi and honey sectors in India. The scope of this cooperation includes setting up of centers of excellence, availability of better planting material, capacity building of farmers, technical assistance in horticulture management, post-harvest processes, supply chain and food security measures. Special projects for producers of very good quality apples and promotion of sustainable beekeeping are expected to improve production and quality standards in the country.

“All tariff rate quotas related to apples, kiwi fruit and manuka honey will be linked to the implementation of agricultural productivity action plans and will be monitored by JAPC,” the ministry said. New Zealand has claimed that it has become the ‘first’ country to get duty concession on its apples under this agreement. Currently, India imposes 50 percent duty on apple imports. But under this FTA, duty concession is being given to apples imported from New Zealand subject to a fixed quota and minimum import price.

According to the data, the annual import of apples from New Zealand to India is 31,392.6 tonnes, valued at US$ 32.4 million. This is a small part of India’s total apple imports of 5,19,651.8 tonnes ($424.6 million). New Zealand will get duty concession on 32,500 tonnes of apples in the first year of the FTA. This quota will be increased to 45,000 tonnes by the sixth year, on which 25 percent duty and minimum import price of $1.25 per kg will be applicable. Imports exceeding the fixed quota will be subject to duty at the rate of 50 percent only. Under the FTA, a Tariff Rate (TRQ) quota system, minimum import price and other safeguard measures will be implemented for select agricultural products such as apples, kiwi fruit, manuka honey and albumin. This will ensure quality imports, consumer choice and protection of interests of domestic farmers.