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domestic farmers and industry”. Given the FTA, further price declines are expected for
Other sensitive products, such as apples, kiwis and imported pine making the sector even more price-competitive.
Manuka honey, while not excluded, are protected through Even if the shift is not immediate, the potential drop in imported
Tariff Quote Ratios (TQR). softwood prices could gradually influence how manufacturers
TQR sets limits on the amount of product that can be source materials, leading to altered market dynamics.
exported and applies additional tariffs once those limits are

exceeded. The Maharashtra Global Furniture City
However, over 54 percent of New Zealand products, Bharat Cluster Ventures Private Limited has signed a
such as wood, wool and sheep meat are duty free. Some Memorandum of Understanding (MoU) with the State government
have raised questions about the FTA‘s impact on domestic of Maharashtra for the development of India’s first integrated
suppliers, especially softwood producers. furniture Park, the ‘Maharashtra Global Furniture City’ said the
As domestic softwood production is minimal India relies Association of Furniture Manufacturers & Traders.
on imports, importing around 85 percent of its softwood. New This is envisioned as a world-class integrated industrial
Zealand is one of the main exporters of softwood to India. ecosystem that will empower MSMEs, reduce import dependency,
According to the Ministry of Commerce, in 2019 NZ create large scale employment, strengthen exports and position

pinewood imports were valued at around US$521 million. Maharashtra as a global hub for furniture manufacturing.
This dropped to US$381 million in 2020 due to the pandemic This MoU is not merely an agreement, it is a shared
leading to a decline in imports until 2024. commitment to nation-building through organised industry,
In 2024-25, imports increased to around US$587 million. innovation and collaboration, according to the Association of
This is expected to be further amplified by the FTA, especially Furniture Manufacturers & Traders.
given the duty-free status of wood products from the start
of the Agreement. Indian economy well placed to face impact of Middle

India’s softwood market has been estimated as growing East crisis
at 11 percent annually and is projected to reach US$1.06 The Indian economy is seen to be relatively well-placed to
billion by 2032. This surge is driven by rapid urbanisation, face the impact of the Middle East crisis, according to the
construction requirements and furniture manufacturing. International Monetary Fund’s (IMF) latest World Economic
Used frequently in plywood, softwood is a cost-effective Outlook.
choice for many plywood producers. However, plywood The IMF revised upwards India’s growth projection for
producers in many parts of south India say they primarily
jbdodane
use domestic hardwoods such as rubberwood and Gurjan
for plywood production.

According to the online marketplaces IndiaMart and
TradeIndia, the current price of Indian softwood, varying by
type of wood, ranges from around INR150 to INR1,200 per
cubic foot. NZ Radiata Pine prices are said to be around
INR500 per cubic foot.
Prior to the FTA, most softwood imports from New Zealand
faced duties of around 5.5 to 11 percent, hence the higher price.