India holds firm on agri tariffs in UK trade deal

India has concluded its FTA with the UK without offering any import duty concessions on sensitive agricultural items like dairy products, apples, and cheese. These goods, which fall under the 10% sensitive tariff lines, remain protected to safeguard the livelihoods of small farmers.

India has decided not to provide any import duty concessions to the UK on sensitive agricultural products such as dairy items, apples, and cheese under their recently concluded free trade agreement (FTA), an official said on Tuesday. “Agri items like dairy products, apples, cheese etc are excluded from any duty concession. It will help India protect its farmers,” the official noted. These items fall within the 10% of tariff lines categorized as sensitive, which India consistently protects in its FTAs to safeguard the livelihood of small farmers.

The decision aligns with India’s long-standing trade policy. Even under the EFTA (European Free Trade Association) pact signed in March last year with Switzerland and Norway, India did not offer any duty relief for dairy products. The UK had been keen on securing some concessions, especially given the scale and growth of India’s consumer market, but India remained firm in excluding these goods from tariff reductions.

At present, India imposes around 30% import duty on milk and milk products, a measure aimed at shielding domestic dairy farmers from international competition. The official emphasized that safeguarding these sectors is crucial for rural income security, particularly in a country where agriculture sustains a large section of the population.

The India-UK FTA negotiations, which began in January 2022, have now concluded, and the final agreement reflects India’s firm stance on protecting sensitive sectors. This decision may shape future discussions with other trade partners seeking access to India’s agri market.