Bilateral Treaty with UK Benefits Farmers and Food Industry

26-Jul-2025 01:22 PM

New Delhi. The Integrated Economic and Trade Agreement (SETA) between India and Britain will benefit both the countries. It is expected to benefit India's farming community, especially the food processing industry and the textile industry.

Under this, the export of Basmati rice, millets, cotton, peanuts, fruits and vegetables, onions, pickles, spices, tea and coffee as well as many other agricultural and food products from India to Britain is expected to increase rapidly because these Indian products will get exemption from customs duty there.

SETA was signed in London yesterday in the presence of the Prime Ministers of India and Britain. Under this treaty, the share of agricultural products in the products which have been agreed to be exempted from customs duty will be 14.8 percent and the share of food processing industry products will be 10.8 percent.

Certainly, this agreement will create an important opportunity for India and will prove to be helpful in increasing the export of Indian products. Since Britain has already separated from the European Union, it is free to enter into any treaty at its own level.

Among the processed food products, the ones which are likely to increase exports from India to Britain include fruit juice, jam, chutney, processed vegetables, canned fruits, salad dressing, meat products and beverages etc. Earlier, a hefty import duty of 70 percent was applicable on these products in Britain, which will now be reduced to zero percent.

But dairy products, apples and edible oils have not been included in this treaty, due to which no concession will be given on import duty on these in Britain. Farmers and exporters of Punjab-Haryana will benefit from the exemption of customs duty on Basmati rice.