FTA: No duty cut by India on dairy, rice, wheat, pulses

The country has also safeguarded many other sensitive sectors, including beef and poultry, fish and seafood, cheese, maize, corn, fruits and vegetables, nuts, edible oils, spices and tobacco, the ministry said.

Photograph: Parivartan Sharma/Reuters

India has fully protected its sensitive sectors like dairy, rice, wheat, pulses, tea, genetically modified (GM) goods, and coffee by not granting any import duty concessions to the European Union (EU) under the bilateral free trade agreement, according to the Commerce Ministry.

The country has also safeguarded many other sensitive sectors, including beef and poultry, fish and seafood, cheese, maize, corn, fruits and vegetables, nuts, edible oils, spices and tobacco, the ministry said.

The move is important as it involves the livelihood of small and marginal farmers.

India has never granted duty benefits in the dairy sector in any of its previous free trade agreements (FTAs).

“We will always protect this segment,” an official said.

India and the EU concluded negotiations for the FTA on Tuesday. It is likely to be signed and implemented this year only.

The EU has also excluded certain sectors from the ambit of this pact.

The 27-nation bloc is safeguarding items such as meat and meat offal, dairy products, honey, rice, sugar, and tobacco.

As per the agreement, several Indian agricultural goods will get duty concessions in the EU markets, which will help boost the country’s exports.

India is getting preferential market access to about 87 per cent of tariff lines or product categories of agri goods like tea, coffee, spices, and table grapes.

Under the pact, the EU will also reduce duties from the current 0-26 per cent on certain marine products, which will help increase exports.

The EU marine market for imports stood at Rs 4.67 lakh crore ($53.6 billion).