Indian onion growers and exporters are set to gain significantly from the India-United Kingdom Free Trade Agreement (FTA), with the UK agreeing to eliminate the existing 4.5% import duty on Indian onions. The move is expected to enhance the competitiveness of Indian onions in the British market and drive higher exports in the coming months.
Although the UK currently accounts for only around 1-2% of India’s total onion exports, industry stakeholders believe the duty-free access will help Indian onions secure a larger share of the market. The development is expected to benefit onion-producing regions across the country, particularly Maharashtra’s Nashik district and the Lasalgaon belt, one of India’s largest onion-producing hubs.
Exporters, however, cautioned that logistics remain a major challenge. While shipments to the UK earlier took around 20-25 days by sea, ongoing geopolitical tensions and disruptions to global shipping routes have extended transit times to nearly 35-40 days. Despite the longer voyage and higher freight costs, the removal of import duty is expected to offset some of these disadvantages and improve the overall competitiveness of Indian exports.
The India-UK FTA also provides duty-free access for a wide range of agricultural products, while 97.1% of tariff lines covering processed food products will receive zero-duty treatment. The agreement is expected to create substantial opportunities for Indian exporters, considering the UK imports agricultural and processed food products worth over US$90 billion annually.
Industry experts believe the agreement will strengthen India’s position in the UK market by placing its agricultural products on a level playing field with competing global suppliers. The increased export potential is also expected to generate employment across the agricultural value chain, including Farmer Producer Organisations (FPOs), packhouses, food processing units, logistics providers and export-oriented supply chains.
Welcoming the agreement, Nashik-based onion exporter Vikas Singh said the removal of the 4.5% import duty marks a significant milestone for the sector.
“The India-UK Free Trade Agreement has opened a new avenue for Indian onion exports. Until now, the 4.5% import duty made it difficult for Indian onions to compete on price. With the duty reduced to zero, Indian onions will become far more competitive in the UK market,” Singh said.
The FTA is expected to encourage exporters to expand shipments to the UK while providing Indian onion farmers with improved market access and better price realisation, further strengthening India’s agricultural export prospects.
