New Zealand apples at 25% duty, kiwifruit at zero: What's the catch in India's new trade deal? - Moneycontrol.com

The recent trade pact between India and New Zealand introduces a differentiated tariff structure for two of New Zealand’s most popular fruit exports. Apples will be subject to a 25 percent duty, a rate that is higher than the duty on many other fruit categories, whereas kiwifruit will be admitted without any tariff. This arrangement reflects negotiations that balanced New Zealand’s demand for market access with India’s aim to protect its own horticultural producers, especially those growing apples in the northern states.

Indian apple growers have long voiced concerns about cheap imports eroding their market share. By keeping the duty on apples relatively high, the government hopes to give domestic orchards a price advantage, allowing them to compete with imported varieties that often arrive at lower prices due to New Zealand’s efficient supply chain. At the same time, the duty‑free status for kiwifruit is likely to increase its availability in Indian supermarkets, offering consumers a wider choice and potentially lowering retail prices for that fruit.

For Indian shoppers, the policy could mean higher prices for apples but more affordable kiwifruit, while importers will need to adjust their sourcing strategies. The agricultural ministry has indicated that the tariff schedule will be reviewed periodically to ensure it aligns with domestic production trends and consumer demand. Observers will watch how the new rates influence trade volumes, farmer incomes and the overall balance of fruit imports over the coming years.