The conclusion of the long-pending free trade agreement (FTA) between India and New Zealand has drawn fresh attention to Kashmir, India's largest apple-producing region, as growers and policymakers assess its implications. Under the agreement, New Zealand apples will gain limited preferential access to the Indian market through a tariff-rate quota, while India has retained key safeguards to protect domestic producers. Imports within the quota—starting at 32,500 metric tonnes and rising to 45,000 metric tonnes over six years—will face a reduced import duty of 25 per cent, compared to the current 50 per cent. Shipments beyond this limit will continue to attract the higher duty along with a minimum import price of $1.25 per kg and seasonal restrictions.
Government officials have stressed that the deal is based on complementarity rather than competition. Commerce Minister Piyush Goyal and chief negotiator Petal Dhillon said sensitive sectors, particularly horticulture in regions like Kashmir, had been shielded through careful design of safeguards.
However, economists in the Valley view the FTA as a warning signal for overdue reforms. Former J&K finance minister Haseeb Drabu cautioned that growers must become more competitive through higher yields, lower costs and reduced climate risks. While the immediate impact may be limited due to quotas and counter-seasonal imports, experts warn against complacency. The agreement also opens avenues for technology transfer, as New Zealand's apple productivity far exceeds India's. Overall, the FTA has highlighted the urgency of modernising Kashmir's horticulture sector to prepare for a more competitive future.
India has retained the right to withdraw concessions if agreed safeguards are violated, officials said. Bilateral trade between the two countries stood at $2.1 billion in FY2025, with both sides aiming for a significant expansion over the next five years. For Kashmir, which anchors India's apple economy, the FTA has underscored the urgency of modernising orchards, improving yields and building climate resilience. While the deal may have a limited immediate impact, it has sharpened the debate on how the Valley's horticulture sector prepares for a more competitive future.
Source: www.greaterkashmir.com
