Exports of grapes, shrimps, semi-milled rice, honey & onions to UK to get boost
By Sandip Das
The commerce ministry has identified shipment of commodities including grapes, shrimps, semi-milled white rice, onions, honey processed food preparations, sauces to get a boost from the India-UK trade deal, sources said.
The trade pact is expected to boost shipment of agricultural and processed food products from India to rise by over 50% in the next three years following the announcement of elimination of tariffs on over 95% of agricultural items.
“The abolition of duties will bring Indian products at parity with major exporters of agri-products such as European Union, South Africa, Turkey, Canada, Peru and Vietnam which currently enjoyed zero or concessional duty access,” sources said.
Preferential access for Indian agri-products
The pact would provide smallholders farmers of the country preferential access to the UK’s agri-imports estimated in the range of $ 85-88 billion, an official said.
Currently, India’s agri-exports to the UK is valued at just $ 811 million.
Agriculture minister Shivraj Singh Chouhan said “keeping into consideration economic interest of farmers while imports relaxation of sensitive items is not provided, while abolition of import duties on host of items by the UK would ensure exports of several commodities at the cheaper prices,”.
Meanwhile, rice exporters said that allowing duty-free access of semi-processed (brown) rice including widely consumed Pusa basmati varieties – 1121, 1509, 1718 and 1401 to UK would create greater market opportunities across Europe from Indian exporters
“However, it is disappointing that milled (polished) Basmati rice still faces import duties. We urge policymakers to address this gap in future trade discussions to ensure fair access for all basmati variants,” Ranjit Singh Josan, vice-president, basmati rice millers and exporters association, told FE.
The pact allows duty import of semi-processed rice varieties to the UK, the milled (polished) basmati rice still faces import duties of 121 pound per tonne which works out to be 12-13% of landed merchandise value at current prices.
Out of India’s annual exports of 0.16 million tonne (MT) to the UK only a small portion is white rice, as there 10 processing plants set up by Indian companies to process semi-milled brown rice.
Marine products and niche exports
In the marine sector, with the existing UK tariffs on shrimp ranging between 4.2% – 8.5%, officials said rapid growth in shipment is projected of commodities such as shrimp, tuna, fish, fishmeal and feeds.
“By making Indian products more price-competitive, the agreement directly supports the viability of aquaculture, especially in rural areas,” Divya Kumar Gulati, chairman , Compound Livestock Feed Manufacturers Association of India, said.
To protect the interest of smallholders farmers, sensitive items such as dairy products, apples, pineappled, oranges, vegetables and edible oils have been kept out of India’s tariff relief offer . No tariff reduction is offered by India for sugar, milled rice, pork, chicken and eggs also.
In addition duty free access to instant coffee from an earlier rate at 3.1% will boost shipment.
Cut in duties on edible oil may allow India to export ‘speciality’ oils such as mustard and coconut to the UK market meeting demand of the diaspora. India at present imports 56% of its edible oils consumption mostly of palm, soybean and sunflower varieties.
This article has been republished from The Financial Express.