India to lower 30% import duty on Kiwi from New Zealand

India and New Zealand are making progress in their trade relations. India has agreed to reduce the 30% import duty on Kiwi fruit from New Zealand, while New Zealand has opened its market to Indian mangoes, bananas, and fresh pomegranate seeds. A deal involving technology exchange to boost fruit production is expected during the New Zealand Prime Minister’s visit to India in October. The import duty reduction may be limited due to concerns over the impact on Indian growers. 

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India has agreed to New Zealand’s request to reduce the 30% import duty on Kiwi fruit. New Zealand has also opened its market to fresh pomegranate seeds, bananas, and Indian mangoes.

New Zealand has also responded positively to India’s proposal to collaborate in the exchange of technologies to increase the output of fruits such as apples. A deal is expected to be signed when New Zealand’s prime minister visits India in October.

The import duty may not be reduced significantly because Indian growers may be affected now that the Kiwi area has reached approximately 6,000 hectares, according to an official. India’s imported 43,270 tonnes of Kiwi’s in 2023-24 down from 50,920 tonnes in 2022-23.

According to Anil Dwivedi, a leading fruit importer, “Kiwi fruits from Chile have a 15% duty due to India’s preferential trade agreement. As a result, it has a price advantage over New Zealand.”

India and New Zealand have been discussing a free trade agreement (FTA) since April 2010, with the last formal round of talks taking place in Delhi in February 2015. However, the negotiations were halted due to several reasons, including low trade volumes, New Zealand’s proposal for tariff concessions on agriculture and dairy products, India’s sizable domestic dairy industry, and disagreement among existing political economies.

As both countries shifted their focus, there have been recent efforts to revive the negotiations. The key areas covered in the negotiations include trade in goods, services, investment, and related issues.

The negotiations have been described as “challenging but not impossible” by New Zealand officials. This suggests that there have been some difficulties in reaching an agreement, likely due to the complexities involved in negotiating a comprehensive trade deal.