Visit part of push for greater trade access for kiwifruit and onion industries
A delegation from New Zealand’s horticultural sector is set to visit India this December, according to reporting from Farmers Weekly.
As part of the tour, representatives from the New Zealand kiwifruit, onion, avocado and stonefruit sectors will visit New Delhi and Mumbai.
Last July Zespri announced it was working with both the New Zealand and Indian governments alongside Plant & Food Research on ways to assist local kiwifruit growers in India’s Northeastern region. In exchange, tariff relief was being sought for New Zealand fruit, enabling Zespri to boost its market development efforts.
Under the current agreement, Zespri faces a 33 per cent tariff on its kiwifruit exports to India. Over the 2023/24 season Zespri sold 285,000 trays of green fruit through a collaborative marketing arrangement with Freshmax. This is down significantly from the 750,000 trays marketed in 2021/22 and 2020/21.
However, according to the report, negotiations over a better kiwifruit deal have stalled with federal government departments in India following last year’s India-NZ Business Council summit in New Delhi.
Michael Fox, Zespri’s head of global public affairs, told Farmers Weekly that Zespri is looking forward to supporting the delegation in December.
“Business will be leading the way with India, building personal relationships to give the government a platform for wider trade talks in the future,” he said.
He acknowledged any trade deal with India would not be as transactional as a free trade agreement (FTA) with the likes of China given established relationships play a big role in success.
Onions NZ chief executive, James Kuperus said the trip would aim to see where New Zealand onions could meet Indian demand for non-traditional brown onions, often used in more Western cuisines at restaurants and hotels.
“They tend to use eschalots and red onions, which we do produce here,” Kuperus told Farmers Weekly. “But our mantra is for markets to consume local produce, while we here in New Zealand provide differentiated produce.”
New Zealand onions also face a 30 per cent tariff in India and a fumigation requirement that, according to NZ Onions, isn’t conducive to providing a high-quality product.
Kuperus said producers are taking a long-term view of trade with Indian, anticipating it will take at least five years to gain greater access.
“We are trying to fall in behind the government to invest in relationships and not shy away from the challenge,” he said.
New Zealand’s Prime Minister, Christopher Luxon had previously promised he would have a deal signed by the end of his first term in power, but more extensive trade talks have remained elusive, with dairy remaining a major stumbling block to a free trade agreement, according to Farmers Weekly.
It is yet to be confirmed whether minister of trade, Todd McClay will accompany the delegation on the visit to India.
