Nashik: India-UK Trade Deal Gives Major Boost To Onion Exports; UK Scraps 4.5% Import Duty

Nashik: Indian onion growers are set to benefit from the Free Trade Agreement (FTA) signed between India and the United Kingdom (UK), as the UK has agreed to eliminate the existing 4.5% import duty on Indian onions. The move is expected to make Indian onions more competitive in the British market and significantly boost exports in the coming months.

Currently, only around 1–2% of India's total onion exports are shipped to the UK. With the removal of import duty, exporters expect Indian onions to gain a stronger foothold in the British market. The development is expected to benefit onion farmers across the country, especially those in Nashik district and the Lasalgaon region, one of India's largest onion-producing belts.

Exporters, however, say logistics remain a challenge. Earlier, onions reached the UK by sea in about 20 to 25 days. Due to ongoing global geopolitical tensions and disruptions in international shipping routes, the transit time has now increased to 35 to 40 days. Despite these delays and higher transportation costs, duty-free access is expected to improve the competitiveness of Indian onions.

Under the India-UK Free Trade Agreement, agricultural products will enjoy zero import duty in the UK. In addition, 97.1% of tariff lines for processed food products will also receive duty-free access, opening new opportunities for Indian exporters.

The UK imports agricultural and processed food products worth more than US$90 billion every year. Industry experts believe the agreement will help Indian agricultural products compete on equal terms with other global suppliers. It is also expected to create employment opportunities in rural areas through Farmer Producer Organisations (FPOs), packhouses, food processing units, and logistics services.

Welcoming the agreement, Nashik-based onion exporter Vikas Singh said the removal of the 4.5% import duty would make Indian onions much more price-competitive in the UK market.

"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.