A concessional customs duty of 25% is available only within the specified quota for apple imports from New Zealand under the pact, for which negotiations concluded on Monday. The ministry’s statement comes amid concerns raised by some associations of apple farmers about duty concessions under the trade pact.
“Any imports beyond the quota will attract the full existing customs duty of 50%, with no concession,” the ministry said. “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% of Indian imports in 2024-25) and is phased over six years.
The quota will be increased gradually from 32,500 million tonnes (MT) in the first year to 35,000 MT in the second, 37,500 MT in the third, 40,000 MT in the fourth, 42,500 MT in the fifth and 45,000 MT in the sixth year.
There is also a provision of minimum import price (MIP). For apples currently imported from other countries, the prevailing MIP is ₹50 per kg, with post-duty prices around ₹75 per kg.
Imports from New Zealand under the FTA are subject to a higher MIP of US$1.25 (about Rs 112) per 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, according to the statement.