In a significant development for India's agricultural sector, New Zealand has announced plans to permit the import of fresh table grapes from India for the very first time. This decision is poised to provide a substantial boost to Indian grape growers, particularly those in the dominant producing states of Maharashtra and Karnataka, which together account for nearly 95% of the country's total grape production.
A New Export Frontier
The move was confirmed by Shane Olsen, the acting director for Import and Export Standards at New Zealand's Ministry for Primary Industries (MPI). In a communication, Olsen stated that Biosecurity New Zealand is currently consulting on a draft Import Health Standard (IHS) specifically designed to enable these new imports from India and Egypt. This regulatory step is crucial, as imports can only commence once the consultation is finalized, the IHS is officially published, and government authorities from both nations agree on arrangements for managing high-risk pests.
This market opening is widely viewed as a direct and positive outcome of the ongoing Free Trade Agreement (FTA) negotiations between India and New Zealand. To date, four rounds of talks have been successfully completed, with the most recent concluding on 8 November in Auckland and Rotorua after five days of constructive discussions.
Rigorous Standards and Market Diversification
Industry leaders have hailed this development as a milestone. Ekram Husain, CEO of Essar Exports, highlighted the significance, noting that New Zealand could become a major market for Indian grapes. He emphasized that this is a very positive development for both traders and farmers.
Gaining access to New Zealand is particularly notable because of the country's famously rigorous quality and phytosanitary standards. Ganesh D. Patil Vadaje, a grape producer from Nashik, Maharashtra, stated that entering such a tough market is a big development for farmers, who are eager to explore this new opportunity.
This move is critical for diversifying India's export destinations. According to DGCIS data, India currently has no grape exports to New Zealand. Historically, Indian grapes have been shipped to markets like the Netherlands, Russia, the UK, and Bangladesh. In FY24, India's fresh grape exports were valued at $417.1 million, demonstrating the sector's robust global presence.
Economic Impact and Future Trajectory
The economic implications for India's grape heartlands are profound. Maharashtra is the country's largest grape-producing state, contributing over 67% of total production in 2023-24, followed by Karnataka at 28%. The decision by New Zealand is seen as a testament to India's improving ability to meet international phytosanitary standards, enhancing its reputation as a reliable exporter of high-quality fresh fruit.
While New Zealand is not relaxing its strict import requirements, the new, consolidated IHS will align its protocols with international standards, making them consistent and practical. This process not only paves the way for Indian grapes but also signals a strengthening economic partnership between the two nations as they advance towards a comprehensive trade agreement.
