"Liquid Gold": How NZ's mānuka honey could become a sweet opportunity in India
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India has the potential to become one of New Zealand’s largest export markets for mānuka honey within the next five years, providing a significant boost to the industry’s long-term growth, according to Mānuka Collective chief executive Sean Goodwin, The New Zealand Herald has reported.
The prediction follows the announcement of a bilateral trade agreement between New Zealand and India, which will substantially reduce tariffs on premium mānuka honey exports.
Under the agreement, tariffs on mānuka honey valued above US$30 per kilogram will fall from 66 per cent to 16.5 per cent over a five-year period. The deal also includes a quota of 200 tonnes of mānuka honey annually, valued between US$20 and US$30 per kilogram, which will receive the same tariff reduction.
During his official visit to New Zealand last week, Indian Prime Minister Narendra Modi highlighted the significance of mānuka honey, drawing parallels with the role and importance of honey in Ayurveda practiced in India. Describing it as a "golden liquid", Modi praised the health benefits of mānuka honey, saying both cultures have long valued honey for its traditional significance as well as its health and wellness benefits.
"I believe we [India] can learn a lot about honey production from New Zealand, " PM Modi said in his address on 11 July at Spark Arena.
Currently, New Zealand exports only about five tonnes of honey to India each year, generating around $110,000 in revenue. However, Goodwin believes exports could increase dramatically as the new trade settings take effect, according to The New Zealand Herald.
He estimates that exports could reach as much as 1,000 tonnes annually within five years, creating a market worth approximately $50 million a year.
“That market, of course, is potentially lucrative, with India’s middle class expected to number over 700 million people by 2030.”
Growing demand and new opportunities
India is already the world’s fourth-largest honey producer, making the concessions granted under the agreement particularly noteworthy. According to Goodwin, India has not previously offered similar benefits for honey imports in its other trade agreements.
“The key point - and potentially the reason behind India’s willingness to provide this concession - is that higher value mānuka honey can potentially bring both health and economic benefits to India,” Goodwin tell The New Zealand Herald.
“The former, by way of building natural immunity in human and animal populations and the latter through partnerships with New Zealand suppliers to manufacture and distribute pharmaceutical/medical products using mānuka honey.”
Goodwin told Herald the agreement also gives New Zealand a competitive advantage by formally recognising the Ministry for Primary Industries’ definition of mānuka honey.
“This will be the official standard, one that Australian suppliers are unable to replicate, and it provides a strong first-mover advantage for New Zealand in the market.”
He believes India could quickly become one of New Zealand’s top three mānuka honey export destinations, accounting for up to 1,000 tonnes of imports each year and adding around 10 per cent to the country’s total mānuka honey exports.
Focus on premium products
Goodwin said the agreement is designed to encourage trade in higher-value mānuka honey rather than lower-priced products.
“The focus is on higher-grade honey and it’s clear that the Indian Government wants to protect against flooding the market with cheap product. The quota is for a slightly lower value, and that is important to help seed the market," Herald has quoted.
Higher-value exports are expected to improve returns for beekeepers and producers, while also supporting efforts to expand supply across the sector.
Supporting India's honey industry
The free trade agreement also includes provisions for New Zealand to assist with the development of India’s honey industry through research partnerships, quality assurance programmes and market development initiatives.
“This initiative is particularly important to Prime Minister Modi, who implemented a Sweet Revolution programme administered by the Indian National Beekeeping and Honey Mission,” says Goodwin.
PM Modi also addressed a about a Beekeeping Mission running in India, during his address on 11 July.
The collaboration could lead to the establishment of research centres focused on improving productivity, strengthening disease management and enhancing training and certification systems for honey and bee-related products.
A major objective of the programme is to improve livelihoods in rural communities by increasing incomes for the small-scale operators who make up much of India’s beekeeping sector.
India has the potential to become one of New Zealand’s largest export markets for mānuka honey within the next five years, providing a significant boost to the industry’s long-term growth, according to Mānuka Collective chief executive Sean Goodwin, The New Zealand Herald has reported.The...
India has the potential to become one of New Zealand’s largest export markets for mānuka honey within the next five years, providing a significant boost to the industry’s long-term growth, according to Mānuka Collective chief executive Sean Goodwin, The New Zealand Herald has reported.
The prediction follows the announcement of a bilateral trade agreement between New Zealand and India, which will substantially reduce tariffs on premium mānuka honey exports.
Under the agreement, tariffs on mānuka honey valued above US$30 per kilogram will fall from 66 per cent to 16.5 per cent over a five-year period. The deal also includes a quota of 200 tonnes of mānuka honey annually, valued between US$20 and US$30 per kilogram, which will receive the same tariff reduction.
During his official visit to New Zealand last week, Indian Prime Minister Narendra Modi highlighted the significance of mānuka honey, drawing parallels with the role and importance of honey in Ayurveda practiced in India. Describing it as a "golden liquid", Modi praised the health benefits of mānuka honey, saying both cultures have long valued honey for its traditional significance as well as its health and wellness benefits.
"I believe we [India] can learn a lot about honey production from New Zealand, " PM Modi said in his address on 11 July at Spark Arena.
Currently, New Zealand exports only about five tonnes of honey to India each year, generating around $110,000 in revenue. However, Goodwin believes exports could increase dramatically as the new trade settings take effect, according to The New Zealand Herald.
He estimates that exports could reach as much as 1,000 tonnes annually within five years, creating a market worth approximately $50 million a year.
“That market, of course, is potentially lucrative, with India’s middle class expected to number over 700 million people by 2030.”
Growing demand and new opportunities
India is already the world’s fourth-largest honey producer, making the concessions granted under the agreement particularly noteworthy. According to Goodwin, India has not previously offered similar benefits for honey imports in its other trade agreements.
“The key point - and potentially the reason behind India’s willingness to provide this concession - is that higher value mānuka honey can potentially bring both health and economic benefits to India,” Goodwin tell The New Zealand Herald.
“The former, by way of building natural immunity in human and animal populations and the latter through partnerships with New Zealand suppliers to manufacture and distribute pharmaceutical/medical products using mānuka honey.”
Goodwin told Herald the agreement also gives New Zealand a competitive advantage by formally recognising the Ministry for Primary Industries’ definition of mānuka honey.
“This will be the official standard, one that Australian suppliers are unable to replicate, and it provides a strong first-mover advantage for New Zealand in the market.”
He believes India could quickly become one of New Zealand’s top three mānuka honey export destinations, accounting for up to 1,000 tonnes of imports each year and adding around 10 per cent to the country’s total mānuka honey exports.
Focus on premium products
Goodwin said the agreement is designed to encourage trade in higher-value mānuka honey rather than lower-priced products.
“The focus is on higher-grade honey and it’s clear that the Indian Government wants to protect against flooding the market with cheap product. The quota is for a slightly lower value, and that is important to help seed the market," Herald has quoted.
Higher-value exports are expected to improve returns for beekeepers and producers, while also supporting efforts to expand supply across the sector.
Supporting India's honey industry
The free trade agreement also includes provisions for New Zealand to assist with the development of India’s honey industry through research partnerships, quality assurance programmes and market development initiatives.
“This initiative is particularly important to Prime Minister Modi, who implemented a Sweet Revolution programme administered by the Indian National Beekeeping and Honey Mission,” says Goodwin.
PM Modi also addressed a about a Beekeeping Mission running in India, during his address on 11 July.
The collaboration could lead to the establishment of research centres focused on improving productivity, strengthening disease management and enhancing training and certification systems for honey and bee-related products.
A major objective of the programme is to improve livelihoods in rural communities by increasing incomes for the small-scale operators who make up much of India’s beekeeping sector.
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