India's Apple Import Strategy: Balancing Global Trade and Domestic Farmer Interests

India has reached a free trade agreement with New Zealand on apple imports, ensuring market access while safeguarding domestic farmers' interests. A quota system with concessional duty and a minimum import price is set to control imports, gradually increasing over six years. The pact will be implemented in seven-eight months.

India has crafted a comprehensive free trade agreement with New Zealand, providing regulated market access for apple imports while implementing measures to protect domestic farmers. According to the commerce ministry's announcement, the agreement includes a restricted concessional customs duty of 25% only for imports up to a specified quota.

The FTA outlines a gradually increasing quota over six years, beginning with 32,500 tonnes and reaching 45,000 tonnes in the sixth year. Furthermore, imports beyond the quota will face the full customs duty of 50%, ensuring that domestic interests remain safeguarded. A minimum import price of USD 1.25/kg ($170/kg) is also set for imports from New Zealand.

A joint council will oversee implementation, linking market access with an Apple Action Plan to boost India's apple sector. These measures ensure controlled market access, leveraging international technology for sector growth, but some local apple farmers have voiced concerns regarding duty concessions.

(With inputs from agencies.)