India seeks market access, VHT approval to boost grape exports to New Zealand

New Delhi: India has sought early market access for grape exports to New Zealand and approval for its vapour heat treatment (VHT) facilities—used to kill pests— in Delhi and Lucknow.

During a bilateral meeting on Monday, Union agriculture minister Shivraj Singh Chouhan urged his New Zealand counterpart, Todd McClay, to approve the VHT facilities as part of India’s broader strategy to enhance fruit trade between the two nations, according to an official statement from the agriculture ministry.

Mint on 26 June reported that India plans to start new free trade agreement (FTA) discussions with New Zealand.

With VHT being critical for meeting New Zealand’s stringent biosecurity standards, India’s push for prompt approval and market entry aims to strengthen its trade ties with New Zealand and expand its fruit export basket.

Vapour heat treatment (VHT) is a process used to kill pests and pathogens on fruit, ensuring safety and compliance with biosecurity standards. It’s important for exporting fruit to countries with strict regulations.

As per commerce ministry data, India is a leading exporter of fresh grapes, with exports valued at $417 million in FY24. The country ships grapes to various destinations, including the Netherlands, the UK, the UAE, Russia and Bangladesh.

As both ministers discussed 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, the ministry said.

New Delhi has shifted its focus to exporting agricultural products, including fresh fruit and vegetables, to new destinations such as the US, the European Union, and African countries, as a self-imposed ban on rice and wheat exports has been in place for over a year.

The Economic Survey 2024 suggested placing greater emphasis on cultivating high-value crops to boost farmers’ incomes.

The agriculture sector, which has grown at an average rate of 4.18% over the last five years, remains critical for economic growth.

Also Read: Commerce ministry shifts focus to push fresh fruits and vegetables to US and EU

The Economic Survey stated that smallholder farmers cannot significantly increase their income by solely producing rice, wheat, millets, pulses, and oilseeds. They should shift to high-value agriculture, such as fruits, vegetables, fisheries, poultry, and dairy farming.

According to agriculture ministry data, India’s annual grape production is about 3.5 million tonnes. Major grape-producing states include Maharashtra, Karnataka, Telangana, Andhra Pradesh and Tamil Nadu.