Zespri welcomes India-NZ FTA, highlights benefits for kiwifruit growers

New Zealand kiwifruit exporters will benefit from lower tariffs in India under the India-New Zealand Free Trade Agreement (FTA), which came into force on October 20, while a new five-year programme will support Indian green kiwifruit growers.

Under the agreement, 6,250 tonnes of New Zealand kiwifruit can enter India tariff-free each year initially, with the quota increasing to 15,000 tonnes by the sixth year. Exports outside the quota will face a tariff of 16.5%, down from 33%.

Zespri chief executive Jason Te Brake said India was an important market for the company, with growing demand for healthy, premium fruit and opportunities to expand kiwifruit sales.

“While interest in kiwifruit continues to grow, high tariffs have historically constrained sales and limited investment in market development. The FTA provides greater certainty to invest in building demand and grow the category in India over the long term.

"The entry into force of this agreement marks an important moment for the New Zealand kiwifruit industry and for our relationship with India. We have strong confidence in India as a future market and are investing to build the market from next year. This New Zealand sales season is coming to an end, and growers will benefit from reduced tariffs from the 2027 season, as work continues on the New Zealand industry-funded support programme for Indian green kiwifruit growers.

"India is home to more than 1.4 billion people and is one of the world's fastest-growing large economies. We see enormous potential to bring premium, healthy kiwifruit to more consumers while delivering strong value back to New Zealand growers.

"The improved market access provided through the FTA gives us the confidence to continue investing in the market, strengthen partnerships with our customers and distributors, and increase awareness of kiwifruit among Indian consumers.”

The Kiwifruit Action Plan (KAP) has also been launched under the FTA. Funded by New Zealand kiwifruit growers and delivered by the Bioeconomy Science Institute, the five-year programme focuses on green kiwifruit and aims to improve production, strengthen supply chains and increase consumer demand in India.

The programme will work with growers in rural communities and establish Centres of Excellence, or model orchards, in key growing regions. These centres will demonstrate good growing practices and provide training suited to Indian conditions.

The first two Centres of Excellence are being established in Nagaland and Uttarakhand.

The programme aims to support both countries' kiwifruit industries, which complement each other because Indian-grown and New Zealand-grown fruit are available at different times of the year.

“The Centres of Excellence demonstrate the industry's commitment to ensuring the benefits of the agreement are shared by growers and communities in both countries,” says Mr Te Brake.

"This partnership is about creating value on both sides. We believe that by working together we can create lasting benefits for growers, consumers and communities in both countries."

Zespri also acknowledged the New Zealand and Indian governments, negotiators and officials who helped secure the agreement.

“Trade is critical to New Zealand’s prosperity. New opportunities like this will enable New Zealand exports and support jobs and communities. We have strong confidence in India and expect the deal to deliver significant benefits over time.”