NEW DELHI, October 20: India will allow 35,000 tonnes of apples from New Zealand to enter the domestic market at a concessional customs duty of 25% in 2027 under the India-New Zealand Free Trade Agreement (FTA), compared with the prevailing 50% duty, under a tariff-rate quota notified by the Directorate General of Foreign Trade (DGFT).

The concession does not mean that all New Zealand apples will face the lower duty or that retail prices will automatically fall. The benefit is restricted by an annual quantity limit, a minimum import price and a seasonal import window. Imports outside the quota remain subject to the applicable most-favoured-nation duty.

The DGFT’s Public Notice No. 33/2026-27, dated October 17, sets out the tariff-rate quota arrangements for apples, kiwifruit, Manuka honey and albumins under the agreement, which came into force on October 20.

The notification sets the first-year apple quota at zero for the remainder of 2026. The 35,000-tonne quota becomes available in 2027.

Apple quota expands gradually, with price and seasonal conditions

Under the notified schedule, New Zealand apples will qualify for the 25% concessional duty in 2027 only when their cost, insurance and freight (CIF) value is at least $1.25 per kg.

The quota is scheduled to increase progressively: 37,500 tonnes in 2028, 40,000 tonnes in 2029 and 42,500 tonnes in 2030. From 2031, the annual quota will reach 45,000 tonnes.

Imports under the concession will be permitted between April 1 and August 31 each year. Shipments that do not meet the minimum CIF value requirement will not qualify for the quota-based duty concession.

India imported approximately 519,652 tonnes of apples from all countries, valued at $424.6 million, according to figures in the Commerce Ministry’s FTA fact sheet. New Zealand accounted for about 31,393 tonnes, worth $32.4 million, in the reference period cited in the document.

The quota therefore provides New Zealand suppliers with a defined route to expand their presence in India, but the quantity is limited relative to India’s total apple imports.

The reduction in customs duty could lower the landed cost of eligible shipments. The eventual impact on retail prices will depend on procurement prices, freight, exchange rates, storage, distribution margins and competition among importers.

The quota does not guarantee that the entire permitted quantity will be imported, nor does it require retailers to pass on the full duty reduction to consumers.

Farmers face competition as government retains safeguards

The concessions are likely to draw attention from domestic apple-producing regions, particularly Himachal Pradesh and Jammu and Kashmir, where growers depend on the domestic market and face challenges involving transport, storage, weather and post-harvest losses.

A lower tariff for eligible imports could improve the competitiveness of New Zealand apples during the permitted import period. The extent of any impact on Indian growers will depend on import volumes, domestic harvest conditions, quality differences and wholesale and retail pricing.

The government has defended the agreement’s agricultural provisions as a calibrated opening of the market rather than unrestricted access.

The Commerce Ministry has said that sensitive sectors, including dairy, sugar, edible oils and key agricultural commodities, remain excluded from tariff concessions. Access for apples, kiwifruit and Manuka honey is governed by tariff-rate quotas, minimum import prices and seasonal windows.

The agreement also establishes an Agricultural Productivity Partnership, with action plans for apples, kiwifruit and honey. These are intended to support improvements in orchard management, productivity, quality, supply chains and post-harvest practices.

Commerce Minister Piyush Goyal said the agreement combines new opportunities with safeguards for Indian farmers. He said the agricultural partnership would promote better orchard management, reduce post-harvest losses and improve productivity.

The agreement’s provisions link tariff-rate quotas for apples, kiwifruit and Manuka honey to the implementation of agricultural action plans, monitored by a Joint Agriculture Productivity Council.

The immediate commercial question is whether the concessional quota will lead to greater supplies at competitive prices without placing disproportionate pressure on Indian growers.

For consumers, the lower duty creates the possibility of a price benefit, not a guarantee. For farmers, the actual impact will depend on how much of the quota is used, when imports arrive and how domestic supply and prices respond.

FAQs

1. What does the India-New Zealand FTA mean for apple imports into India?

The agreement allows eligible New Zealand apples to enter India at a concessional customs duty under a tariff-rate quota, subject to quantity limits, a minimum import price and seasonal restrictions.

2. What is the import quota for New Zealand apples in 2027?

India has set a quota of 35,000 tonnes for New Zealand apples in 2027 under the concessional tariff arrangement.

3. What is the import duty on New Zealand apples under the FTA?

Eligible imports within the quota will attract a concessional customs duty of 25%, compared with the prevailing 50% duty, subject to the agreement’s conditions.

4. Is there a minimum price for apples imported under the agreement?

Yes. Eligible New Zealand apples must have a cost, insurance and freight (CIF) value of at least $1.25 per kg to qualify for the concessional duty.

5. During which months can New Zealand apples enter India under the concessional quota?

The concessional import window runs from April 1 to August 31 each year.

6. Will New Zealand apples become cheaper in India?

The lower duty could reduce the landed cost of eligible imports. However, retail prices will also depend on freight, exchange rates, storage costs, distribution margins and competition. A price reduction for consumers is not guaranteed.

7. How could the FTA affect Indian apple growers?

Greater access for New Zealand apples could increase competition for growers in Himachal Pradesh and Jammu and Kashmir. The actual impact will depend on import volumes, domestic production, seasonal supply and market prices.

8. Will all New Zealand apple imports receive the 25% duty?

No. The concessional duty applies only to qualifying imports within the annual quota and subject to the minimum price and seasonal conditions. Imports outside the quota remain subject to the applicable regular customs duty.

9. Will the apple import quota increase in subsequent years?

Yes. The scheduled quota rises to 37,500 tonnes in 2028, 40,000 tonnes in 2029 and 42,500 tonnes in 2030, before reaching 45,000 tonnes annually from 2031.

10. Which Indian government agency notified the apple import quota?

The Directorate General of Foreign Trade (DGFT) notified the tariff-rate quota arrangements under Public Notice No. 33/2026-27, dated October 17, 2026.