Beekeepers wanting to apply for “quota” to export mānuka honey to India in 2027 with a CIF (cost, insurance and freight) value of US$20-$US30/kg have until 5pm on November 16 to throw their hat in the ring if they want to gain reduced tariff rates.
All mānuka honey above US$30/kg in value landed into India since October 20 has benefitted from the new 56.1% rate (down from 66%) and will continue to gain relief as the rates step down through the next five years. Below that, the quota system limits the amount entering with tariff relief to 200 tonnes at the lower value.
The Ministry for Primary Industries has released details of how to apply for quota online, and will get its first test of the system in mid-November when applications close. The system devised looks to provide opportunity for both large and small exporters, with a two-pool system.
Of the 200 tonne, 180 is earmarked for those wishing to apply for at least 16 tonnes of quota in the ‘main quota pool’ (MQP). The remaining 20 tonnes is set to benefit small exporters, with a ‘smaller exporter quota pool’ (SEQP) for those wanting between 300kg and 2 tonne.
“These pools are designed to provide larger exporters with commercially meaningful quota allocations, while enabling new and small exporters to enter the India market,” explains Vincent Arbuckle, deputy director-general, New Zealand Food Safety, adding that they worked closely with honey exporters and sector groups to develop the quota allocation framework.
“The MQP’s 16-tonne minimum allocation reflects a commercially viable shipment size and aligns with retail packing volumes in mānuka honey trade. It’s aimed at experienced exporters with demonstrated capability to service international markets,” Arbuckle says.
That 180-tonne pool will reward applicants with a higher rate of export volume over the previous three years, with quota released on a percentage-of-the-combined-total-of-applicants basis. The smaller, SEQP, doesn’t use the same ‘historical export volumes’ measure.
“Ten percent of total quota is reserved under the SEQP to ensure new and smaller exporters have the opportunity to access the India market with allocations ranging from 300kg to two tonnes. These smaller allocations are intended to help exporters test and develop the market without needing to demonstrate the export volumes required for the MQP,” Arbuckle says.
While the rules as they stand don’t cater to an exporter wishing to apply for between two and 16 tonnes of quota, Arbuckle advises they apply to both pools.
Winning applicants can also trade quota with other exporters, so long as no individual’s quota holding is already more than, or would cause it to be more than, 20% of the total pool, SEQP or MQP.
Given current total honey export volumes to India are between five and six tonnes for 2024 and 2025 it is perhaps unlikely that all 200 tonne of quota for the US$20-30/kg honey will be allocated for 2027 but it could become a more sought-after proposition as tariff rates continue to fall through to 2030.
Source: www.apiaristsadvocate.com
