Big victory for Indian farmers lies in blueprint of country’s FTA with New Zealand

India has decided not to extend import duty concessions to New Zealand for several sensitive sectors, including dairy, vegetables, sugar, copper, and aluminium, under the free trade agreement (FTA) set to be signed within the next three months. Officials said the move aims to safeguard the interests of Indian farmers and MSMEs.

The two countries announced on Monday that negotiations for the FTA have concluded, with the pact expected to be implemented next year.

Under the agreement, a detailed exclusion list will protect key domestic sectors. It includes dairy products such as milk, cream, whey, yoghurt, and cheese; animal products other than sheep meat; vegetables like onions, chana, peas, corn, and almonds; sugar and artificial honey; and animal, vegetable, or microbial fats and oils. Non-agri sectors like arms and ammunition, gems and jewellery, copper and its products (cathodes, cartridges, rods, bars, coils), and aluminium and its articles (ingots, billets, wire bars) are also excluded.


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At the same time, India has agreed to provide restricted market access for certain agri goods under tariff rate quotas (TRQs) and minimum import prices (MIP). This includes Manuka honey, apples, kiwi fruit, and albumins—including milk albumin, which is widely used in medicines and whey protein production.

Currently, India imposes a 66 per cent duty on Manuka honey, importing 14.2 tonnes (USD 0.3 million) from New Zealand and 356.8 tonnes (USD 1.9 million) globally. The FTA allows duty-free imports of up to 200 tonnes per year at a MIP of USD 20/kg, with a 75 per cent tariff reduction phased in over five years. Beyond the quota, the MIP will rise to USD 30/kg.

For apples, India’s current duty is 50 per cent. Imports from New Zealand total 31,393 tonnes (USD 32.4 million) and global imports stand at 519,652 tonnes (USD 424.6 million). The FTA will allow duty concessions for 32,500 tonnes in the first year, rising to 45,000 tonnes by year six at 25 per cent duty with a MIP of USD 1.25/kg. Any volume beyond the quota will face a 50 per cent duty.

Kiwi fruit, currently taxed at 33 per cent, will have a TRQ of 6,250 tonnes in the first year, increasing to 15,000 tonnes by the sixth year at zero duty, with a MIP of USD 1.80/kg. Imports beyond this quota will attract a 50 per cent margin of preference and a MIP of USD 2.50/kg.

For albumins, including milk albumin, India’s duty is 22 per cent. New Zealand exports 3,430 tonnes (USD 28.9 million) to India, while global imports total 18,801 tonnes (USD 175.3 million). The FTA allows a TRQ of 1,000 tonnes in the first year, rising to 3,000 tonnes by the fifth year, after which the standard duty will apply.