India’s Push for Market Access and VHT Approval for Grape Exports to New Zealand
India has recently sought early market access for grape exports to New Zealand and approval for its vapour heat treatment (VHT) facilities in Delhi and Lucknow. During a bilateral meeting, Union agriculture minister Shivraj Singh Chouhan urged his New Zealand counterpart, Todd McClay, to approve the VHT facilities as part of India’s strategy to enhance fruit trade between the two nations.
Mint reported on 26 June that India plans to start new free trade agreement (FTA) discussions with New Zealand, further strengthening their trade ties.
Vapour heat treatment (VHT) is crucial for meeting New Zealand’s strict biosecurity standards, making India’s request for prompt approval and market entry essential to expand its fruit export basket and enhance trade relations.
Vapour heat treatment (VHT) is a process used to kill pests and pathogens on fruit, ensuring safety and compliance with biosecurity standards, particularly for exporting fruit to countries with stringent regulations.
India is a leading exporter of fresh grapes, with exports valued at $417 million in FY24. The country ships grapes to various destinations worldwide, including the Netherlands, the UK, the UAE, Russia, and Bangladesh.
As trade discussions included expanding trade in fresh and dried fruit, Chouhan specifically mentioned the possibility of granting early market access to Indian exporters for exporting grapes to New Zealand.
New Delhi is actively focusing on exporting agricultural products, like fresh fruit and vegetables, to new destinations such as the US, the European Union, and African countries, due to a ban on rice and wheat exports.
The Economic Survey 2024 encourages cultivating high-value crops to boost farmers’ incomes, as the agriculture sector remains critical for economic growth.
The Economic Survey highlights the importance of shifting from traditional crops to high-value agriculture, such as fruits, vegetables, fisheries, poultry, and dairy farming, to increase smallholder farmers’ incomes.
India’s annual grape production is about 3.5 million tonnes, with major grape-producing states including Maharashtra, Karnataka, Telangana, Andhra Pradesh, and Tamil Nadu.