The New Zealand apple industry’s bid to improve trade conditions in India remains a work in progress, according to Pipfruit New Zealand CEO Alan Pollard.
The two countries are currently locked in ninth round of negotiations for a bilateral trade agreement, which Pollard said would strengthen both industries.
India currently imposes a 50 per cent import duty on imported apples, with a reduction of this rate believed to be a focus of the ongoing discussions.
“Obviously we are keen to have a more welcoming trade environment in place and we are working through the issues surrounding this,” Pollard said. 'It is still early days, and trade agreements never run to a set timeframe, but from the reports I am receiving things are going well. We have an initial five- to 10-year strategy for India but we also see it as a long-term market, so we are not rushing the negotiation process.”
Pollard told Asiafruit New Zealand imports would not be a source of competition to the Indian industry, making it the ideal candidate for a partnership programme.
“We are a counterseasonal supplier to India, meaning we are at no risk of substituting the domestic industry,” Pollard explains. “Our varietal profile is also different to that of India and other countries exporting to the market. Many other exporters are bringing in Red Delicious, which is what the Indian market specialises in, whereas our programmes are more focused on Royal Gala.”
Indian consumers have traditionally held a very particular preference for the Red Delicious variety. However, with taste rather than appearance slowly starting to influence Indian consumer spending, the New Zealand industry sees potential for Royal Gala in the market.
“Indians are becoming more discerning consumers, they are willing to try new products,” Pollard said. “There is also increased spending power being generated by the growing middle-class. We hope this lessens the dominance of high-colour varieties in the medium to long term.”
Pollard suggested a potential partnership with the Indian industry would not be solely focused on trade.
“We have enjoyed a strong relationship with the Indian industry since the 1990s,” Pollard said. “We understand the challenges they face, including climate, pest and disease control, limited cool chain storage and transportation. We are striving for an exchange programme which would include the sharing of ideas, techniques and cultures for the benefit of both industries.”
