India-UK free trade deal opens UK shelves to feni from Goa, Nashik's wines, and Kerala's toddy

Indian Express

3 days ago

India's new free trade agreement with the UK is set to give a global push to its homegrown flavours — from Goa's fiery feni and Nashik's artisanal wines to Kerala's traditional toddy. These iconic beverages will soon enjoy Geographical Indication (GI) protection and duty-free access in the UK, opening doors to premium retail shelves and hospitality chains.
Signed on Thursday, in the FTA signed by India, has protected the interest of domestic farmers by excluding dairy products, edible oils, and apples from the free trade agreement (FTA) with the UK, while securing zero duties on 95 per cent of agriculture and processed food items. No tariff concession has been allowed on oats either.
On the other hand, Indian staples like turmeric, pepper, cardamom; processed goods like mango pulp, pickles, and pulses; and marine products such as shrimp and tuna will enjoy duty-free access in the UK market, boosting India's agri exports by 20 per cent over the next three years.
As per a report by PTI, a commerce ministry official said the biggest wins are in the food processing sector, where products that earlier faced duties up to 70 per cent will now face zero duty on 99.7 per cent of tariff lines. In marine and animal products, tariffs that were previously up to 20 per cent will also drop to zero.
'India's farmers are poised to be the biggest winners of the FTA, which unlocks premium UK markets for their produce, matching or exceeding the benefits already enjoyed by exporters from Germany, the Netherlands, and other EU nations,' the official said, PTI quoted.
More than 95 per cent of agricultural and processed food tariff lines will now attract zero duties on fruits, vegetables, cereals; pickles, spice mixes, fruit pulps; and ready-to-eat meals and processed foods. This reduction is expected to bring down landed costs in the UK, making Indian products more competitive and boosting exports.
'Duty-free access is expected to increase agri exports by over 20 per cent in the next three years, contributing to India's goal of USD 100 billion in agri-exports by 2030,' the official added.
Emerging products such as jackfruit, millets, and organic herbs are also expected to benefit, helping Indian farmers tap into new consumer trends in the UK.
Currently, the UK imports agricultural goods worth USD 37.52 billion annually, but Indian exports account for just USD 811 million — indicating vast potential for growth.
Marine and blue economy products will also gain a major edge. The FTA provides for zero-duty access for 99 per cent of India's marine exports — including shrimp, tuna, fishmeal, and feeds — which currently face duties in the range of 4.2 to 8.5 per cent.
'Despite the UK's USD 5.4 billion marine import market, India's share is just 2.25 per cent — showing a huge untapped opportunity,' the commerce ministry official noted.
The FTA is also expected to help boost exports of high-margin branded products like Indian coffee, tea, spices, and processed food. While the UK currently consumes only 1.7 per cent of India's coffee, the removal of tariffs (up to 10 per cent earlier) will allow Indian instant coffee to better compete with EU brands.
The UK is also a significant buyer of Indian tea (5.6 per cent share), and spices (2.9 per cent). Zero duties on these items will help India expand its footprint in the UK's high-value retail market.
In addition to the iconic beverages, other processed food exports are set to benefit too. India currently exports processed agriculture and food items worth USD 14.07 billion globally, but exports to the UK stand at a modest USD 309.5 million. The UK's overall import value of processed food is USD 50.68 billion, offering plenty of headroom.
In the vegetable oils and plant-based segment, the FTA will eliminate tariffs that earlier went up to 20 per cent. This will support exporters of edible oils, oilseed derivatives, and other plant-based commodities.
States such as Maharashtra (grapes, onions), Gujarat (groundnut, cotton), Punjab and Haryana (basmati rice), Kerala (spices), and the northeastern states (horticulture) are expected to gain significantly.
Tea and coffee, which earlier attracted duties of up to 10 per cent, will now enjoy duty-free access. Spices and oilseeds, which faced up to 8 per cent tariffs, and fruits (up to 20 per cent), will also be exempt from duties.
With these sweeping changes, the India-UK FTA promises to not only give Indian farmers greater market access and better returns, but also put India's regional specialities and cultural exports on global shelves — from local wines to legacy spirits and organic spices.