The horticultural sector is revisiting efforts to sell more produce into the Indian market, with a top-level delegation due to visit New Delhi and Mumbai before Christmas. A full horticultural delegation will include representatives from the kiwifruit, onion, avocado, and summer fruit sectors.
Hopes are for talks to restart over access for kiwifruit, following progress stalling in the wake of last year's India-NZ Business Council summit in New Delhi. At present, Zespri faces a 33% tariff on its kiwifruit exports there. The 2023-24 season had 285,000 trays of Green fruit sold there through a collaborative marketing arrangement between Zespri and Freshmax. This is down from the 750,000 trays marketed in 2021-22 and 2020-21.
Last July, Zespri announced it was working with NZ and Indian governments alongside Plant & Food Research on ways to assist the local kiwifruit grower sector in India's Northeastern region. In exchange, tariff relief was being sought for NZ fruit, enabling Zespri to boost its market development efforts. However, progress in the 12 months since the summit has been slow, with efforts stalling with federal government departments in India.
Michael Fox, Zespri's head of global public affairs, said 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.
Onions NZ CEO James Kuperus said the exploratory trip aims to see where NZ Onions could meet Indian demand for non-traditional brown onions, usually used more in Western cuisines in restaurants and hotels there. "They tend to use shallots and red onions, which we do produce here. But our mantra is for markets to consume local produce, while we here in NZ provide differentiated produce." NZ onions currently face a 30% tariff in India and a fumigation requirement that is not conducive to providing the highest quality product on arrival.
Kuperus said producers are taking a long-term view of the Indian trade market, anticipating 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." NZ is ranked ninth in the world's top 10 exporters of onions globally, with the Netherlands and China dominating.
More extensive trade talks that play into a free-trade agreement have remained elusive after Prime Minister Christopher Luxon promised he would have a deal signed by the end of his first term in power. However, dairy remains a major stumbling block to any rapid signing of an FTA.
Source: FarmersWeekly