A
small fruit vendor’s stall in Mumbai is symbolic of the effects
of globalisation. The market is flooded with apples, kiwi -fruit,
oranges, and a multitude of fruits, with labels from different parts
of the world. And for New Zealand, the lowering of trade barriers
has opened up avenues for agricultural trade with India.
Says
Peter Healy, trade commissioner, Trade NZ, New Zealand High Commission,
“NZ is an open economy and Indian exporters are most welcome to
introduce their products into the NZ market.” He adds, “Import liberalisation
is likely to increase the import of fruit from NZ and possibly vegetables
as well. The phyto sanitary permit required is not likely to be
an impediment as NZ product will certainly meet the required standards.”
NZ
was the first country to export apples, kiwi- fruit and lamb to
India. “New Zealand now controls approximately 35 per cent of the
imported apple market and this is likely to grow,” says Healy adding,
“the Indian consumer enjoys the sweet high quality kiwi apple.”
Further, in 1998, kiwifruit was shifted to OGL. The first consignment
of kiwifruit touched Indian shores in June 1998 and was sold out
in a short time. Since then kiwifruit imports have grown steadily.
“We
see good potential for growth in export of fruits, lamb, agri-tech
consultancy and equipment, livestock and wool to India,” says Healy.
For the year 2000, New Zealand total exports to India were valued
at NZ $ 170 million. Of this agricultural products accounted for
NZ $ 85.5 million (FOB). This is a 7.8 per cent drop from the NZ$
181 million (FOB) worth of exports in 1999, which is attributed
to the cyclone at Kandla port and the Gujarat earthquakes. However,
during 1998-99, New Zealand’s exports to India grew over 15 per
cent largely due to a rise in exports of dairy products and NZ pine
logs.
Two
developments lead to an increase in New Zealand’s timber trade to
India. First, in 1996, the Supreme Court banned the felling of timber
in the northeast. This region was the main source of timber for
the plywood industry and the ban on felling of trees lead to an
acute shortage of hard wood such as teak and mahogany. Second, tariffs
on timber imports were drastically slashed from 100 per cent to
12 per cent.
The
annual demand for timber in India is projected to exceed 40 million
cubic metres by 2006 and Trade NZ sees significant growth in timber
exports to India. “Pine exports to India have grown very strongly
in the past three years and will do so in the future,” says Healy.
NZ pine is a strong versatile plantation timber suitable for use
in furniture manufacturing, joinery, house construction, industrial
buildings, bridges and general packaging. “NZ pine could provide
the building blocks for a successful Indian furniture export business
and could also provide India with the ability to build low cost
earthquake resistant buildings,” he adds.
New
Zealand has long-term interest in the Indian market and is even
looking for opportunities to provide assistance in developing pine
plantations in India. Timber apart, India could help strengthen
agricultural productivity with consultancy from New Zealand. “There
is excellent prospects in the field of agri-tech consultancy and
equipment from NZ, given NZ expertise in the field, particularly
in the sectors of dairy, food processing and livestock improvement.”
