Stories
Kiwifruit to Get Cheaper in India: New Zealand FTA Boosts Imports
M
Moneycontrol•21-09-2026, 21:30
Kiwifruit to Get Cheaper in India: New Zealand FTA Boosts Imports
- •Kiwifruit from New Zealand is expected to become cheaper in India due to the India–New Zealand Free Trade Agreement (FTA), which includes a tariff-rate quota and minimum import price.
- •The FTA, signed in April 2026 and effective October, grants New Zealand duty-free access for 6,250 tonnes of kiwifruit in the first year, increasing to 15,000 tonnes by the sixth year, subject to a minimum import price of US$1.80 per kg.
- •India currently imposes a 33% customs duty on kiwifruit; under the FTA, imports within the quota will be duty-free, while shipments outside the quota will see a 50% tariff reduction to 16.5%.
- •Despite tariff reductions, the final retail price will be influenced by various factors like freight, insurance, and retail margins, meaning prices won't fall by the same percentage as duties.
- •India's kiwifruit market heavily relies on imports, with domestic production meeting only about one-quarter of the demand, making lower-cost imports significant for urban markets while raising concerns for local growers.
Key Questions Answered
Kiwifruit imported from New Zealand could become cheaper under the FTA through a duty-free quota starting at 6,250 tonnes. However, the price drop will be limited by a minimum import price of US$1.80 per kg and various supply chain factors like freight, handling, and domestic taxes.
The India-New Zealand FTA was signed in April 2026. New Zealand's Parliament approved the implementation legislation in September 2026, and the agreement is expected to take effect in the second half of October.
India's kiwifruit market depends heavily on imports, bringing in around 49.14 million kg in 2024. The leading suppliers that year were Iran with the largest volume, followed by Chile, New Zealand, Greece, and Italy.
