India-New Zealand FTA opens niche growth avenue for spice exports

• Low spice imports from India point to underpenetrated market
  
  
• Duty-free access to boost competitiveness in high-value destination
  
  

India and New Zealand have signed a comprehensive free trade agreement (FTA), providing near full duty-free access and easing regulatory barriers across agriculture and food products. For India's spice sector, the agreement strengthens export competitiveness in a small but high-value destination where penetration remains limited.

Export volumes remain modest, indicating untapped potential

India's exports of key spices -- cumin, coriander, turmeric, black pepper, and cardamom -- to New Zealand have remained relatively low, well below 1% of India's total spice exports. Shipments increased from 516.48 tonnes (t) in 2023 to 718.43 t in 2024, before moderating to 646.11 t in 2025. Exports in 2026 were at 156.58 t up to March.

The trend indicates stable but small-scale demand, with no significant bulk trade flows, reflecting New Zealand's status as a niche consumption-driven market.

Meanwhile, India holds a share of around 20-25% in New Zealand's import basket, indicating further expansion is possible despite low-absolute volumes.

Trade pact to support value realisation, steady flow

The zero-duty framework is expected to improve price competitiveness, particularly for cleaned, sortex, and blended spice products. Exporters could benefit from better alignment in standards, traceability, and packaging requirements, supporting retail-ready and high-margin shipments.

While near-term trade may remain influenced by freight volatility and global disruptions, the agreement provides structural support to scale volumes gradually and improve realisation in an underdeveloped but stable market.