India's free trade agreement with New Zealand takes effect on Tuesday, October 20, 2026, and the Directorate General of Foreign Trade (DGFT) has now notified the tariff rate quotas that will govern imports of New Zealand apples, kiwifruit, Manuka honey and albumins under the pact.
Under the notified quotas, India will allow 35,000 tonnes of New Zealand apples at a concessional duty of 25 per cent in 2027, compared with the prevailing import duty of 50 per cent. Kiwifruit imports will qualify for zero customs duty under the tariff rate quota, subject to a minimum CIF value of 1.80 dollars per kg. The provisions take effect on October 20, 2026, the DGFT said in a public notice issued on Monday.
The catch, however, is timing. The agreement's first tariff year runs from October 20 to December 31, 2026, but the seasonal import windows for both fruits have already closed for this year, which means the first in-quota shipments will effectively begin only in April 2027.
For apples, there will be no quota in the first year. The annual import window will run from April 1 to August 31 each year. In the second year, the quota will be 35,000 tonnes, rising to 37,500 tonnes in the third year, 40,000 tonnes in the fourth, 42,500 tonnes in the fifth and 45,000 tonnes from the sixth year onwards. Apples shipped outside the quota will face India's prevailing tariff, and minimum import price conditions will apply.
For kiwifruit, there will likewise be no quota in the first year. The quota will start at 8,000 tonnes in the second year and rise to 9,750 tonnes in the third, 11,500 tonnes in the fourth and 13,250 tonnes in the fifth year. The annual window for kiwifruit runs from April 1 to October 15. Qualifying kiwifruit shipped outside the quota may still receive an out-of-quota tariff reduction through the year, offering importers some flexibility beyond the seasonal window.
The DGFT notice also covers New Zealand-certified Manuka honey and albumins. Forty tonnes of Manuka honey under the quota have been permitted for 2026, with the annual limit rising to 200 tonnes from 2027. The quota for albumins, a category of protein products, will be 200 tonnes in the first year, 1,500 tonnes in the second, 2,000 tonnes in the third and 2,500 tonnes in the fourth.
The notice lays down strict conditions for the use of the quotas. A tariff rate quota authorisation will be valid only for the quota year in which it is issued, and imports against it will be permitted only within the quota window. Any unutilised quantity will lapse on expiry of the authorisation, putting the onus on importers to plan shipments carefully within the defined windows.
The India-New Zealand free trade agreement was signed on April 27 by Commerce and Industry Minister Piyush Goyal and New Zealand's Minister of Trade and Investment Todd McClay. It is one of a series of trade pacts India has concluded as part of its push to diversify export markets and secure stable supply chains.
The agreement is expected to significantly deepen bilateral trade, with the stated aim of doubling trade by 2030. It also includes provisions for mutual recognition of organic products and around 20 billion dollars in investments, according to reports.
For Indian exporters, the deal offers immediate and substantial benefits. New Zealand will remove duties on 8,284 tariff lines for Indian goods that meet the rules of origin, which set the criteria for where products are made. The Commerce Ministry has identified textiles, apparel, footwear, leather, engineering products, gems and jewellery, and processed foods among the sectors eligible to benefit from duty-free access to the New Zealand market.
India's own tariff offer is structured in tiers. Duties disappear immediately on 30 per cent of tariff lines, while another 35.6 per cent are phased out over three, five, seven or ten years. A further 4.37 per cent receive tariff reductions without full elimination, and 0.06 per cent fall under quotas. Nearly 30 per cent of lines remain excluded, including core dairy products, a sector India has consistently shielded in its trade agreements to protect its farmers.
The Commerce Minister has said that India's sensitive products, including dairy, sugar, edible oils, onions, chickpeas and almonds, will stay outside tariff concessions. Apples, kiwifruit and honey enter only through the notified tariff rate quotas, minimum import prices and seasonal windows, a structure designed to balance consumer benefits with safeguards for Indian farmers.
The quota structure reflects a careful compromise. On one side, Indian consumers stand to gain from cheaper imported fruit as the quotas expand over the coming years. The halving of the apple duty from 50 per cent to 25 per cent within the quota, and the elimination of duty on kiwifruit, are significant concessions by Indian standards for agricultural products.
On the other side, the seasonal windows, minimum import prices and strict quota administration are intended to prevent import surges during the Indian harvest season and to protect domestic growers, particularly apple farmers in Himachal Pradesh and Jammu and Kashmir.
For importers, the rules demand close attention. The distinction between in-quota and out-of-quota treatment matters: once the applicable quota is exhausted, additional shipments cannot assume the same preferential rate. Importers must secure the applicable authorisation, confirm the quota year and the import window, and meet the documentation requirements before shipping.
The requirement that TRQ authorisations lapse if unused adds a planning discipline that the trade will need to absorb in the first year of the pact.
The agreement also carries transitional arrangements for goods already in transit or under customs control when the agreement starts, so that shipments caught mid-voyage are not left in limbo.
As the pact comes into force, businesses on both sides will be watching how quickly the promised trade flows materialise. For New Zealand's fruit exporters, the real test begins in April 2027, when the first quota windows open. For Indian exporters of textiles, leather goods, engineering products and jewellery, the duty-free access to New Zealand is available from day one.
The India-New Zealand pact adds to a growing web of Indian trade agreements that seek to open new markets while ring-fencing sensitive farm sectors. How the balance plays out in practice, for apple growers in the Himalayan belt, for fruit importers in Delhi's mandis, and for exporters eyeing the New Zealand market, will become clearer as the first full tariff year unfolds.
(Reporting based on The Economic Times and CNBC TV18.)