Under the newly negotiated free trade agreement (FTA) with the European Union (EU), India has partially opened its agriculture sector while retaining a high minimum import price (MIP) and tightly controlled quotas to protect farmers’ interests, the Ministry of Commerce said.
Under the FTA, preferential market access has been extended to select agricultural products such as tea, coffee, spices, grapes, gherkins and cucumbers, dried onions, fresh fruits and vegetables, as well as certain processed food products. However, sensitive segments including dairy, cereals, poultry, soymeal, and several fruits and vegetables have been excluded from the agreement.
Explaining the safeguards, the ministry cited apples as a key example. Under the FTA, the EU will be allowed to export up to 50,000 tonnes of apples annually to India—rising to 100,000 tonnes over a 10-year period—at a concessional duty of 20%, subject to a minimum import price of ₹80 per kg. This translates into a minimum effective landed cost of around ₹96 per kg.
“This preserves domestic price stability and, while safeguarding farmer incomes, supports the strong market position of locally produced apples,” the ministry said on Wednesday.
India imported around 500,000 tonnes of apples in 2024, with the EU accounting for over 11% of total imports. The government said the quota offered under the FTA broadly aligns with the EU’s existing export volumes to India, limiting the risk of a sharp rise in imports. These shipments are expected to largely substitute existing import sources rather than expand overall apple imports.
In return, Indian apples will gain zero-duty access to the EU market over a period of five to seven years, opening up premium export opportunities for domestic growers.
“We have structured this in a way that our apple producers are not disadvantaged in any manner,” Commerce Secretary Rajesh Agrawal said. “These imports are segmented and priced at a different level, ensuring growers in Himachal Pradesh and Jammu & Kashmir can continue supplying at current prices. At the same time, we have secured market access because, as we integrate further with global supply chains, there will be a two-way flow of apples.”