All safeguard measures in place on apple to protect farmers' interests under India-New Zealand FTA

New Delhi, Dec 24 (PTI) India has given a balanced and calibrated market access to New Zealand on apple imports under the free trade agreement, while putting in place adequate safeguard measures to protect the interests of domestic farmers, an official statement said on Wednesday.

A concessional customs duty of 25 per cent is available only within the specified quota for apple imports from New Zealand under the pact, for which the negotiations were concluded on Monday.

Both India and New Zealand have finalised the free trade agreement (FTA), and it is expected to be implemented in seven-eight months.

"Any imports beyond the quota will attract the full existing customs duty of 50 per cent, with no concession," the commerce ministry said.

In the FTA, it said, a balanced and calibrated market access has been extended for imports of apples from New Zealand to ensure that the interests of domestic farmers are fully protected.

"FTA incorporates robust and multi-layered measures, all of which must be simultaneously satisfied for any imports to take place," it said.

The quota is also aligned with India's current import levels from New Zealand (7.3 per cent of Indian imports) in 2024-25, and is phased over six years.

The quota will be increased gradually to 32,500 tonnes (MT) in the first year, 35,000 MT in year two, 37,500 MT in year three, 40,000 MT in year four, 42,500 MT in year five, and 45,000 MT in year six.

Further, there is also a provision of a minimum import price (MIP).

For apples currently imported from other countries, the prevailing MIP is Rs 50/kg, with post-duty prices around Rs 75/kg.

In contrast, imports from New Zealand under the FTA are subject to a higher MIP of USD 1.25/kg (about Rs 112/kg), resulting in a minimum post-duty price of Rs 140/kg after the concessional duty.

"This ensures that only premium-priced apples enter the Indian market, fully protecting domestic prices, while imports are diversified," the ministry said.

Concessional duty-based access is also restricted to a defined seasonal window from April 1 to August 31, deliberately avoiding peak periods.

Further, it said that the market access is explicitly linked to the implementation of the Apple Action Plan under the Agriculture Productivity Partnership.

A Joint Agriculture Productivity Council under the Department of Agriculture and Farmers' Welfare will oversee bilateral engagement, monitor implementation and ensure deliverable of agreed outcomes.

Besides, the Agriculture Productivity Partnership supports the establishment of Centres of Excellence for apples in India, focusing on modern orchard management, productivity enhancement, integrated pest and disease management, advanced post-harvest handling, and climate-resilient production systems, the statement said.

India is the third-largest importer of apples globally at 557,989 MT in 2024-25, and the market access reflects a balanced, transparent approach to leverage international technology and practices for enhancing productivity and farmer incomes in India with a view to build India's apple sector, it said.

According to reports, certain apple farmer associations have raised concerns over duty concessions under the trade deal. PTI RR HVA