Big Win for Indian Farmers in UK-India Trade Deal — No Tariff Cuts on Dairy

Indian farmers are expected to benefit the most from the upcoming Free Trade Agreement (FTA) between India and the United Kingdom. Once finalized, this trade deal will help Indian produce reach high-value markets in the UK. In fact, the deal may offer Indian exporters even better benefits than what countries like Germany and the Netherlands currently enjoy.

No Tariff on Many Indian Farm Products

Common Indian agricultural products such as turmeric, pepper, and cardamom — along with processed goods like mango pulp, pickles, and lentils — will enter the UK market without any import duties. This duty-free access will help farmers earn more and expand their reach.

The FTA is expected to boost India’s farm exports to the UK by more than 20% over the next three years. Over 95% of India’s agricultural and food products listed under trade rules will face zero tariffs after the deal is signed. These items include fruits, vegetables, cereals, spice mixes, pulps, and ready-to-eat foods. The lower cost of these goods in the UK market will make them more competitive in both mainstream and South Asian stores.

This agreement will help Indian agriculture shift focus from selling in large quantities locally to exporting high-quality goods globally.

Sensitive Sectors Remain Protected

Even as the deal opens up many new opportunities, India has taken care to protect its most sensitive farm sectors. The country will not reduce import duties on dairy products, apples, oats, or edible oils. This decision ensures that Indian farmers in these sectors remain safe from foreign competition.

The deal also encourages Indian farmers to grow new products such as jackfruit, millets, different vegetables, and organic herbs. This will help reduce risks from price changes in the local market.

Seafood Exports to Grow with Zero-Duty Access

The FTA is expected to give a big push to India’s seafood industry, especially in coastal states like Andhra Pradesh, Odisha, Kerala, and Tamil Nadu. Items such as shrimp, tuna, fishmeal, and feeds — which currently face UK import duties between 4.2% and 8.5% — will now get duty-free access.

The UK’s seafood import market is worth USD 5.4 billion, and Indian exporters will be able to tap into this market more easily through the deal.

Premium Exports Like Coffee and Tea to Benefit

The agreement is also expected to increase exports of India’s premium products such as coffee, tea, and spices. Right now, the UK buys 1.7% of India’s coffee, 5.6% of tea, and 2.9% of spices. With no import tax, these numbers are likely to grow.

Indian instant coffee, in particular, will be in a better position to compete with top European suppliers like Germany and Spain in the premium market.

A Big Step for India's Farm Export Goals

The government believes this FTA will be a game changer for India's farm and food processing sectors. It will help the country move toward its goal of reaching USD 100 billion in agricultural exports by the year 2030.