Over 95 per cent of Indian farm goods will face zero tariffs under the India-UK Free Trade Agreement, giving Indian agricultural exports a projected boost of more than 50 per cent in the next three years, the Indian government has claimed.
“The India-UK CETA will allow Indian farmers to fetch premium prices for their products in the UK market, thereby granting parity with major EU exporters like Germany and the Netherlands, who currently enjoy zero tariffs,” said a government source.
Exports of fruits, particularly fresh grapes, onions, and mixed vegetables, as well as natural honey, preserved vegetables, processed food preparations, sauces, and prepared condiments, are expected to benefit significantly.
Bakery items such as bread, pastries, cakes, etc., are also expected to gain better access to the UK market.
Notably, key and sensitive products have been kept out of the purview of tariff concessions by India. Dairy products such as milk, cheese, butter, dairy spreads, and ghee are on the exclusion list, thereby safeguarding the interests of Indian dairy producers.
Similarly, in the cereals category, major crops like wheat, rice, maize, and millets have been excluded from tariff concessions by India. On the other hand, India has secured duty-free access for most of these products from the UK, which is expected to be a significant boost for Indian farmers.
“Further, while India has liberalized access for some UK agricultural products like cranberries, durians, certain varieties of mushrooms, leeks, lettuce, and artichokes, which have negligible production in India. Sensitive items such as apples, pineapples, oranges, and pomegranates have been excluded from tariff concessions, thereby safeguarding the interests of our farmers,” said government sources.