Aakash Yadav
From 20 October 2026, the first set of customs duty concessions under the India-New Zealand Free Trade Agreement comes into effect. India has notified preferential rates for selected products imported from New Zealand, as detailed in reports on India notifying the first New Zealand FTA duty cuts with zero duty on sheep meat and 15% on eligible kiwi fruit by ET.
For Indian consumers, this mainly means potential price relief on a few imported food items — especially sheep meat, kiwi fruit, Manuka honey and some wines. Dairy products, which many people were watching closely, remain largely outside the duty cuts.
Here is a clear picture of what becomes cheaper, what stays protected, and how much difference you are realistically likely to see in the market.
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India-New Zealand FTA Duty Cuts Start from 20 October 2026
The government has issued the first notification of preferential customs duties for goods coming from New Zealand. These lower rates apply only to products that meet the rules of origin and the specific conditions mentioned in the notification.
The cuts are not across the board. Some items get immediate zero duty, some get a reduced rate, and a few sensitive products are allowed only in limited quantities under tariff-rate quotas.
Which Imported Items Will Become Cheaper from 20 October
Sheep Meat – Duty Reduced to Zero
Fresh, chilled and frozen sheep meat from New Zealand will attract zero basic customs duty, zero Agriculture Infrastructure and Development Cess (AIDC) and zero health cess under the specified tariff lines. This is one of the clearest and most immediate concessions.
Kiwi Fruit – Preferential Duty of 15%
Eligible kiwi fruit imports (those meeting the value and origin conditions) will face a basic customs duty of 15%. This is a noticeable reduction from the earlier higher rate. The exact benefit depends on the declared value and compliance with the prescribed conditions.
Manuka Honey and Other Honey Products
Manuka honey gets preferential treatment, including concessions under tariff-rate quotas. The duty reduction is significant compared with the earlier high rate (around 66%), but the full benefit is available only on limited quantities and subject to minimum import price conditions.
Wine and Select Alcoholic Beverages
Certain wines from New Zealand will see reduced duties. The reduction is phased in many cases and depends on the value category of the wine. Premium and mid-range New Zealand wines are the ones most likely to benefit in the Indian market.
Certain Fish and Seafood Items
Selected fish and seafood tariff lines will attract a lower basic customs duty (around 25.71% in some cases) with AIDC and health cess set to zero. This can help products such as mussels and other New Zealand seafood that already have a presence in Indian cities.
Items Covered Under Tariff Rate Quotas (TRQ)
For a few agricultural products, India has not given open-ended zero duty. Instead, it has allowed limited quantities to enter at a preferential rate.
Apples and kiwifruit are the main fruits under TRQ arrangements. The preferential quota for these items is limited in the initial years and is also linked to minimum import prices and seasonal windows. Manuka honey and albumins also have quantitative limits.
Once the quota quantity is exhausted, additional imports face the higher regular duty. This means the price benefit will be most visible while the quota volume is still available.
What Remains Unchanged or Protected
Dairy products are largely excluded from tariff liberalisation. Milk, butter, cheese and most other dairy items continue to face the existing high duties. This was a deliberate decision to protect Indian dairy farmers.
Several other sensitive agricultural items also remain outside the duty-cut list. The agreement focuses the immediate concessions on products where India was more comfortable opening up, while keeping strong safeguards for domestic producers in sensitive sectors.
How Much Cheaper Can These Items Actually Get?
A cut in customs duty does not automatically translate into the same percentage drop on the supermarket shelf. Similar patterns were seen after the recent edible oil duty reductions. For a parallel example of how import duty cuts filter through to retail prices, see our analysis of the government cutting import duty on palm, soybean and sunflower oil from 24 September.
The final retail price depends on several factors:
- How much of the duty saving the importer and distributor pass on
- Existing inventory bought at the old duty rates
- Local taxes (including GST)
- Rupee movement against the dollar
- Brand positioning and marketing margins
In practice, shoppers are more likely to see gradual price moderation or better promotional offers rather than an overnight sharp drop. Sheep meat and kiwi fruit are the categories where the duty cut is large enough that some visible relief is possible within a few weeks to a couple of months.
Impact on Indian Consumers and Retail Market
For regular consumers, the most noticeable items to watch are:
- Imported sheep meat (mutton/lamb) in modern retail and hotels
- Kiwi fruit during the import season
- Manuka honey, especially mid-range packs
- New Zealand wines in the mid and premium segments
Seafood buyers in larger cities may also see slightly better pricing or wider availability of certain New Zealand products.
The overall impact on the average household budget will be limited because these are not daily-consumption staples for most Indian families. The benefit will be more meaningful for people who already buy these imported items regularly.
What Importers and Retailers Need to Know
To claim the preferential duty, the goods must satisfy the rules of origin under the India-New Zealand FTA. Importers need the prescribed proof of origin and must ensure the products fall under the exact tariff lines notified for concession.
For items under tariff-rate quotas, additional documentation and quota allocation procedures apply. Retailers and distributors who plan to pass on the benefit will need to manage inventory carefully so that stock bought under the new rates reaches shelves without long delays.
Practical Takeaway for Shoppers
You do not need to rush out and buy everything on 20 October. Duty cuts take time to reflect in retail prices. The items worth keeping an eye on in the coming weeks are sheep meat, kiwi fruit, Manuka honey and selected New Zealand wines.
If you already purchase these products, compare prices over the next one to two months. Any meaningful reduction is more likely to appear gradually through lower shelf prices or better offers rather than an immediate across-the-board cut.
Frequently Asked Questions on India-New Zealand FTA Duty Cuts
From when do the new duty rates apply?
The preferential rates notified under the first set of concessions apply from 20 October 2026.
Will kiwi fruit and Manuka honey become cheaper immediately?
Not necessarily on day one. The duty benefit will start applying to fresh consignments that meet origin and other conditions. Retail prices will adjust only after importers and distributors pass on the saving.
Is dairy included in the duty cuts?
No. Most dairy products remain excluded and continue to attract the existing high import duties.
Do all New Zealand products get zero duty?
No. Only specified products and tariff lines get concessions. Many items remain at the regular duty rates, and some sensitive products are completely excluded.
Will local prices drop by the same percentage as the duty cut?
Unlikely. The final retail price also includes other costs, margins and taxes. The duty cut creates room for lower prices, but the actual reduction seen by consumers is usually smaller than the full duty cut percentage.
Summary – Key Imported Items Getting Cheaper from 20 October
From 20 October 2026, India has reduced or removed import duties on selected New Zealand products. Sheep meat gets zero duty, kiwi fruit gets a preferential 15% rate on eligible consignments, and Manuka honey, certain wines and some fish products also receive concessions.
Dairy remains largely protected. The price benefit for consumers will depend on how quickly and how fully the duty savings are passed through the supply chain. Shoppers who regularly buy imported sheep meat, kiwi, Manuka honey or New Zealand wine should watch prices over the coming weeks for gradual relief rather than expecting an overnight drop.
