Trade & Markets

The NZ–India FTA: What Mānuka Importers Need to Know

By the Nuka Team • 7 May 2026 • 10 min read

On 27 April 2026, New Zealand and India signed the long-awaited Free Trade Agreement in New Delhi.[1] For Mānuka honey importers in India, this is the single biggest commercial change in a decade.

Here's what the agreement means in practice — what's changing, when it changes, who qualifies, and what Indian distributors and importers need to do to take advantage.

All facts in this article are sourced from the New Zealand Ministry of Foreign Affairs and Trade (MFAT), the New Zealand Government's Beehive press releases, and Radio New Zealand. Sources are linked at the end.

The headline change for Mānuka honey

Before the FTA, India's Most Favoured Nation tariff on natural honey (HS code 0409) sat at 66%. That tariff applied to all Mānuka entering India under the standard import schedule.[2]

Under the FTA, that tariff drops to 16.5% over five years for Mānuka honey that meets two specific conditions:[2] [3]

  1. Certified by the New Zealand Ministry for Primary Industries (MPI) as authentic Mānuka honey
  2. Priced at or above US$30 per kilogram at point of import

For Mānuka priced between US$20 and US$30 per kilogram, a separate 200-tonne annual quota opens at the same reduced 16.5% tariff.

To put the volume in context: New Zealand's recent average Mānuka exports to India have been just 7 tonnes per year.[2] The 200-tonne quota is roughly 30 times current trade volume — meaning the quota is unlikely to bind in the early years of the agreement.

What "MPI-certified Mānuka" means

This is the gatekeeping condition. Not every honey labelled "Manuka" qualifies for the reduced tariff — only honey that passes MPI's scientific definition test for export.

MPI certification requires the honey to pass a 5-attribute test:[4]

  1. 3-Phenyllactic Acid (chemical marker)
  2. 2'-Methoxyacetophenone (chemical marker)
  3. 2-Methoxybenzoic Acid (chemical marker)
  4. 4-Hydroxyphenyllactic Acid (chemical marker)
  5. DNA from Leptospermum scoparium pollen (the New Zealand Mānuka plant)

Honey that passes all five attributes is classified as either monofloral Mānuka or multifloral Mānuka depending on chemistry. Both qualify as Mānuka under New Zealand law and both are eligible for the FTA tariff reduction.

What this means for importers: ask every supplier for the MPI export certificate before placing orders under the FTA. Honey from outside New Zealand cannot pass the DNA test for Leptospermum scoparium and therefore cannot qualify for the reduced rate, regardless of how the jar is labelled. For more on how to detect non-genuine Mānuka, see our guide to spotting fake Mānuka honey.

What the US$30/kg threshold means in practice

The US$30/kg minimum is a price floor for the unlimited tariff reduction. The 200-tonne quota for the US$20–30/kg band exists separately as a step-down provision.

Working backwards from typical retail economics:

  • A 250g jar of Mānuka at a CIF (Cost, Insurance, Freight) landed cost of US$30/kg = US$7.50/jar landed cost
  • Standard retail markup of 2.5–3.5× = ₹1,800–2,500 retail price in India (approx, at current exchange rates)
  • This price band aligns with MGO 263+ to MGO 514+ — the entry-to-mid premium grades suitable for premium grocery, hotel F&B, corporate gifting, and wellness retail

Mānuka grades below MGO 263+ are unlikely to clear the US$30/kg threshold and therefore won't qualify for the unlimited tariff reduction. They may still fall under the 200-tonne quota window if priced US$20–30/kg.

For most premium Mānuka brands targeting the Indian market, the US$30/kg threshold is comfortably below their wholesale FOB prices. The threshold is more of a regulatory floor than a constraint. (See our explainer on MGO vs UMF vs MGS for context on grade tiers.)

When does this take effect?

The FTA was signed 27 April 2026. It is not yet in force.

Per New Zealand's standard treaty process, the agreement now goes through:[1]

  1. Tabling in Parliament (immediately following signing)
  2. Referral to the Foreign Affairs, Defence and Trade Committee (FADTC) for select committee scrutiny
  3. Enabling legislation introduced and passed
  4. Equivalent ratification process in India
  5. Both parties exchange notes confirming entry into force

Historically, NZ FTAs have entered into force 6–18 months after signing. The 5-year tariff reduction schedule begins at entry into force, not at signing.

Practical guidance for Indian importers: the tariff is still 66% today. Anyone quoting reduced FTA rates right now is either misinformed or speculating. The window to prepare — supply contracts, MPI certification verification, market positioning — is the 6–18 months between now and entry into force.

Why this matters for Indian distributors

India's Mānuka market is small but high-margin. The country has roughly 1.4 billion consumers and a rapidly growing premium wellness segment. Mānuka has natural alignment with India's traditional medicine context — Ayurveda gives honey deep cultural credibility — and Indian consumers historically gift premium honey at festivals (Diwali, weddings, corporate gifting).

The barriers to scale until now have been:

  1. 66% tariff making landed cost prohibitive for most retail price points
  2. Limited NZ supply — only ~1,700 tonnes of genuine Mānuka produced annually in NZ
  3. Awareness gap — Indian consumers know Mānuka by name but not by grade

The FTA solves problem #1. Problems #2 and #3 remain — but they're solvable with the right brand and the right channel strategy.

The four channel wedges most viable for early-stage Mānuka entry to India:

  1. Hotel F&B and luxury hospitality — Taj, Oberoi, ITC, Leela, Hyatt premium properties already source international honeys for breakfast service and turn-down amenities
  2. Premium grocery and online wellness — Nature's Basket, Foodhall, Le Marche, Healthkart, Tata 1mg, Nykaa Wellness
  3. Corporate gifting — Diwali season demand, year-round wedding gifting, B2B festive hampers
  4. Distributors with health/wellness retail networks — multi-state distributors with FSSAI-registered import infrastructure

What importers should do in the next 6 months

1. Verify your supplier's MPI certification. Ask for the MPI export certificate covering the specific batches you intend to import. Without this, the FTA tariff doesn't apply.

2. Confirm your supplier's price will clear US$30/kg or qualify under the 200-tonne quota. For most premium Mānuka brands, this is automatic. For lower-grade or commodity Mānuka, check carefully.

3. Lock in supply contracts ahead of demand. Mānuka supply is constrained by NZ production volume (~1,700 tonnes annually). When the FTA enters into force and Indian demand surges, the brands that secure supply early will dominate. Premium NZ Mānuka producers with reliable harvest networks are already taking forward bookings.

4. Sort out FSSAI registration. India's Food Safety and Standards Authority (FSSAI) regulates honey imports. Make sure your import documentation is in order — the FTA reduces tariffs, not regulatory compliance.

5. Don't quote FTA rates to customers yet. Until the agreement enters into force, the 66% MFN rate still applies. Quoting 16.5% now creates contract risk.

What this means for NZ-side suppliers

For Mānuka producers in New Zealand, the FTA opens a market that has been effectively closed by tariffs for two decades. The opportunity is real — but the constraint is supply.

NZ producers should expect:

  • Increased Indian distributor inbound in the 6–18 months between signing and entry into force
  • Forward booking pressure for the 2026/27 and 2027/28 harvests
  • Pricing pressure upward as Indian demand competes with existing UAE, China, UK, and US export channels for the same finite supply

Producers with MPI certification ready, reliable harvest sourcing (e.g. via established apiary partnerships), and ability to support premium pricing tiers are best positioned.

Common questions

Is the 16.5% rate available immediately?

No. The agreement was signed 27 April 2026 but is not yet in force. The 5-year reduction begins at entry into force, not signing. The current rate is still 66%.

What's the difference between the unlimited reduction and the 200-tonne quota?

The unlimited reduction applies to Mānuka priced ≥ US$30/kg with no volume cap. The 200-tonne quota applies to Mānuka priced US$20–30/kg with an annual cap of 200 tonnes.

Does Australian "Manuka" qualify?

No. The FTA reduction applies specifically to New Zealand-origin Mānuka certified by MPI. Australian honey labelled "Manuka" cannot pass MPI's DNA test for Leptospermum scoparium and therefore is not eligible.

Does honey labelled "Manuka blend" qualify?

Only if it passes MPI's 5-attribute test. Most blended products don't qualify because they fail one or more chemical or DNA markers.

What about other NZ honey under the FTA?

The FTA reduces tariffs on other NZ honey types as well, with different schedules. The 66% → 16.5% reduction over 5 years specifically applies to MPI-certified Mānuka. Check the MFAT FTA text for non-Mānuka honey schedules.

The takeaway

The NZ–India FTA changes the economics of importing Mānuka into India for the first time in 20+ years. Three things matter most:

  1. MPI certification is the gatekeeper. Without it, the FTA tariff doesn't apply.
  2. The price floor (US$30/kg) is rarely binding for premium Mānuka brands.
  3. Entry into force is 6–18 months away. Use that time to prepare supply, regulatory paperwork, and channel partnerships.

The Indian Mānuka market doesn't exist yet at scale. The FTA is the starting gun. The brands that build distributor relationships, secure supply, and prepare market education in the next 12 months will own the category as it grows.

Working with Nuka in India

Nuka is actively building distribution partnerships in India ahead of FTA entry into force. We hold MPI certification on every batch, our pricing tiers comfortably clear the US$30/kg threshold, and we work directly with importers and distributors — not through intermediaries.

If you're an Indian importer, distributor, hotel F&B procurement lead, or corporate gifting buyer, contact us for current wholesale pricing, MPI certificates, and sample shipments. Every jar is also independently traceable via our batch verification tool.

Sources

  1. "Historic NZ-India FTA signed in New Delhi" — Beehive (NZ Government), 27 April 2026. View →
  2. "Key Outcomes — New Zealand-India Free Trade Agreement" — Ministry of Foreign Affairs and Trade (MFAT). View →
  3. "New Zealand and India free trade agreement confirmed" — RNZ News. View →
  4. "Ensuring Mānuka honey is authentic" — Ministry for Primary Industries scientific definition and 5-attribute test. View →

Building distribution into India?

Nuka holds MPI certification on every batch. Our wholesale pricing comfortably clears the FTA's US$30/kg threshold. Talk to us before the agreement enters into force.

Request Wholesale Pricing → Read: How to Spot Fake Mānuka