Scrap India-New Zealand FTA – An onslaught on Indian agriculture
All India Kisan Sabha | 29 April 2026
Scrap India-New Zealand FTA – An onslaught on Indian agriculture
By signing the Free Trade Agreement (FTA) with New Zealand, the RSS-BJP-led Union government has surrendered the interests of farmers before the demands of global finance. The All India Kisan Sabha (AIKS) is of the firm opinion that the latest FTA is a continuation of a slew of disastrous FTAs signed by the Modi dispensation in the recent past. The common denominator in all these FTAs is an unprecedented servitude to imperialism and a hatred against farmers and other rural working people. The New Zealand FTA has come at a time when Indian farmers are facing an existential crisis. The US-imperialism-induced West Asian crisis is increasing the price of fertilisers and aggravating the agrarian crisis.
According to New Zealand sources, tariffs on nearly half of their exports to India would be eliminated immediately on the day the Agreement enters into force. Tariff-free entry covers nearly 80 percent of their exports once the FTA is fully phased in. While the Modi government is trying to paint a picture that they have succeeded in protecting ’sensitive sectors’ including dairy, agricultural products, etc., a close look into the Fact Sheet reveals that there are very serious loopholes. There are some conditions attached to the market access India promised. However, monitoring such access restrictions does not usually go beyond the printed words in the clauses and sub-clauses of the agreement.
The New Zealand FTA has significantly reduced the basic customs duty on New Zealand apples. The AIKS has consistently demanded a 100% import duty on apples. This reduction could make apples from New Zealand substantially cheaper, directly affecting the livelihoods of the 1.75 lakh families who depend on apple farming. Since apple farmers in New Zealand are highly subsidised, the dismal state support provided to Indian apple farmers cannot match their competitive advantage.
Similarly, the Commerce Ministry is reiterating that core dairy products like milk, cheese, cream, yoghurt, whey, etc. are excluded and that this is addressing the concerns of daily farmers. The Indian dairy industry consists of crores of landless and marginal farmers—the majority of them hailing from socially marginalized sections—with meagre state support.
However, a critical look into the details of the FTA reveals that there are several loopholes. For example, the FTA allows the removal of import duties on certain high-value dairy products, such as bulk infant formula—a product considered as essential for the nourishment and healthy development of infants. This could hugely benefit New Zealand-based dairy big business and harm the class interests of Indian dairy farmers. Apart from this, there is a commitment to implement a dedicated fast-track mechanism to facilitate the duty-free supply of New Zealand products to India for further manufacturing and export. This would also clearly benefit corporate players.
The AIKS calls upon farmers of India to protest such an FTA that will undoubtedly threaten their livelihoods.
Ashok Dhawale
President
Vijoo Krishnan
General Secretary
