Concerns Rise Among Indian Apple Growers Over New Zealand FTA
India-New Zealand FTA raises alarm among apple growers, Cong flags concern
Business Standard
Image: Business Standard
The Free Trade Agreement (FTA) between India and New Zealand, signed on April 27, 2026, raises alarms among apple growers in Himachal Pradesh, Jammu and Kashmir, and Uttarakhand. The reduction of customs duties on apple imports could threaten local producers, already struggling with high costs and climate challenges.
- 01India will reduce customs duty on New Zealand apple imports from 50% to 25%.
- 02The import quota will start at 32,500 metric tonnes, increasing to 45,000 metric tonnes over six years.
- 03Local apple growers fear price pressure during the domestic marketing season.
- 04Himachal Pradesh's apple yield is significantly lower than New Zealand's.
- 05Immediate government intervention is urged to protect domestic apple farmers.
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The recently signed Free Trade Agreement (FTA) between India and New Zealand has raised significant concerns among apple growers in the Himalayan states of Himachal Pradesh, Jammu and Kashmir, and Uttarakhand. Under the agreement, effective from April 27, 2026, India will reduce the customs duty on apple imports from New Zealand from 50% to 25% within a Tariff Rate Quota (TRQ) framework, starting with a quota of 32,500 metric tonnes in the first year and increasing to 45,000 metric tonnes by the sixth year. Congress MLA Kuldeep Singh Rathore expressed that this reduction could severely impact local horticulturists who are already facing rising input costs and climate-related issues. He highlighted the disparity in productivity, noting that New Zealand's apple yields range from 50 to 70 tonnes per hectare, compared to Himachal Pradesh's average of 7 to 8 tonnes per hectare. Rathore emphasized that allowing imports during the domestic apple marketing season (April to August) could depress prices and hurt farmers' incomes. He called for immediate government action to implement safeguards, monitor import quotas, and enforce minimum import prices to protect the livelihoods of Indian apple growers. The apple sector is vital for the economy in these mountainous regions, sustaining thousands of families and providing significant employment.
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The FTA could lead to falling prices for apples, affecting the income of local farmers and potentially discouraging investment in apple orchards.
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