The upcoming Free Trade Agreement (FTA) between India and New Zealand, scheduled to be signed on April 27, 2026, is expected to significantly boost India's agricultural exports. As per the agreement, 100% of India's exports to New Zealand will be duty-free, while tariffs on 95% of current imports from New Zealand will be either sharply reduced or removed. This development is particularly noteworthy for Indian exporters of spices, rice, pulses, and other agricultural products, who will now have unparalleled access to the New Zealand market.
India's agricultural exports have been on an upward trajectory in recent years, with the country's fertile regions, such as the Indo-Gangetic Plain, contributing substantially to global trade. The summer crop season, which typically runs from April to June, is a critical period for Indian agriculture, with crops like rice, sugarcane, and cotton being harvested during this time. The FTA with New Zealand is likely to provide a further fillip to India's agricultural exports, particularly for products like basmati rice, which is in high demand globally.
According to data from the Ministry of Commerce and Industry, India's exports of agricultural products have been steadily increasing over the years. In the financial year 2020-21, India's agricultural exports stood at $41.25 billion, with spices, rice, and pulses being among the top export items. The data also reveals that India's exports of organic products, such as organic spices and organic tea, have been gaining traction in recent years, with the country's organic exports increasing by over 50% in the financial year 2020-21.
The FTA with New Zealand is expected to provide a significant boost to India's exports of these products, particularly during the peak export seasons. For instance, the winter crop season, which runs from October to December, is a critical period for India's spice exports, with crops like turmeric, coriander, and cumin being harvested during this time. With the FTA in place, Indian spice exporters can expect to gain greater access to the New Zealand market, which is known for its high standards of quality and food safety.
In terms of specific products, the FTA is likely to benefit Indian exporters of products like basmati rice, which is currently subject to a 5% tariff in New Zealand. Similarly, Indian exporters of spices like turmeric, coriander, and cumin can expect to gain duty-free access to the New Zealand market, which will help to increase their competitiveness and market share. According to data from the trade statistics website, https://tradestat.commerce.gov.in/, India's exports of these products have been increasing steadily over the years, and the FTA is likely to provide a further boost to these exports.
The FTA is also expected to benefit Indian exporters of organic products, such as organic spices and organic tea, which are in high demand globally. With the FTA in place, Indian organic exporters can expect to gain greater access to the New Zealand market, which is known for its high standards of quality and food safety. As a leading exporter of agricultural products from Hyderabad to 16+ countries, VoyagerExim is well-placed to take advantage of the opportunities presented by the FTA and increase its exports of spices, rice, pulses, and other agricultural products to New Zealand.