India to halve import duty on New Zealand apples and eliminate tariff on kiwifruit within quotas under landmark free trade deal
New Zealand’s pipfruit and kiwifruit industries have hailed today’s announcement of a free trade agreement (FTA) between New Zealand and India, which delivers radically improved market access for both sectors.
Up until now, India has maintained a 50 per cent duty on apple imports from all supplying nations. But in a world-first, the FTA will see India halve the tariff on New Zealand apple imports from 50 per cent to 25 per cent under a quota arrangement.
The lower tariff applies during a window from 1 April to 31 August, which is a counter-seasonal supply period to India’s domestic apple industry, according to a statement from New Zealand Apples and Pears (NZAPI).
The quota, which is set at 32,500 tonnes in year one, increases to 45,000 tonnes in year six and beyond. The minimum landed (CIF) price under the quota is US$1.25 per kg. Outside of these conditions, New Zealand apple exports are subject to the existing 50 per cent tariff.
New Zealand pears will also receive a 50 per cent tariff reduction, which will be phased in over ten years to bring the tariff down to 16.5 per cent, according to NZAPI. Pear exports are not subject to any quota or export window, it noted.
“Christmas has come early for our growers with this announcement,” said Danielle Adsett, NZAPI’s acting general manager. “India is currently the fifth-largest economy globally and this agreement holds untold potential for New Zealand’s pipfruit sector. It will play a pivotal role in achieving NZAPI’s ambition of becoming a NZ$2bn export sector by 2035.”
Duty-free quota for kiwifruit
New Zealand kiwifruit has also secured a major breakthrough under the agreement, which includes a duty-free quota in another first for India.
India will remove the tariff on New Zealand kiwifruit imports within a quota of up to 16,000 tonnes per year, which is almost four times the average of recent years. All volume on top of that will be subject to a tariff of 16.5 per cent, down from the current 33 per cent, according to a statement from Zespri.
Zespri said its sales to India have been “heavily constrained” by the tariff, which cost New Zealand growers around NZ$9m on sales of NZ$27m last year. Zespri exported around 7,200 tonnes to India in 2025.
In return for the preferential market access, New Zealand will launch the Kiwifruit Action Plan as a “flagship deliverable” under the FTA to support India’s domestic kiwifruit industry.
The New Zealand Institute for Bioeconomy Science Ltd (BSI) and the New Zealand kiwifruit industry will work alongside Indian kiwifruit growers in rural communities to support improved production and supply chain performance, according to Zespri.
Zespri CEO Jason Te Brake said the agreement unlocks one of the world’s largest markets for New Zealand growers.
“India represents a huge opportunity for kiwifruit, with the world’s largest population and fastest-growing large economy. Indian consumers are increasingly focused on health and wellbeing and looking for high-quality, nutritious products to support this
“The market access delivered through the FTA will allow us to invest to build high-value demand, providing the world’s best kiwifruit to more Indian consumers.”
Partnerships pay off
Te Brake said the agreement had been many years in the making.
“Zespri and Plant & Food Research (now part of the New Zealand Institute for Bioeconomy Science) have been working closely for several years with the governments of New Zealand and India to improve kiwifruit market access in return for supporting local growers whose product is counter-seasonal to New Zealand’s.
“The work included extensive two-way engagement, visits and the preparation of a comprehensive scoping study to support delivery of the cooperation. The conclusion of the FTA has made this a reality.”
Similarly, the deal for preferential apple access is linked to a cooperation plan and further collaboration between the New Zealand and Indian apple industries, which will see technical experts from New Zealand continue the nation’s longstanding support for Indian growers with productivity and profitability improvements, according to NZAPI.
“While the speed and efficiency of this FTA have been remarkable, in many ways it has also been a long time for our industry,” said Adsett. “Collaboration between Indian and New Zealand apple growers has been ongoing since the 1990s and the first World Bank Apple Industry Development Project.
“These committed relationships have been critical in securing a positive outcome for apples and pears in the India-New Zealand FTA.”
In addition to the breakthroughs for the pipfruit and kiwifruit industries, several other horticulture sectors will benefit from the FTA. Cherries, avocados, persimmons and blueberries will all see tariffs phased out over the next ten years.
The FTA will reduce or eliminate tariffs on 95 per cent of New Zealand’s exports to India, with more than half of products to be duty-free on day one of the pact, increasing to over 80 per cent when fully implemented, according to the New Zealand government.
Negotiations for the FTA began on 21 March and concluded after nine months of “intensive effort”, it said.
The countries are expected to sign the agreement in the first half of 2026, the New Zealand government said.
