New Delhi: The India-European Union free trade agreement could make biscuits and chocolates to pasta, olive oil and sausages more affordable in India, expanding choice and easing prices for consumers over the next few years, reports Rupali Mukherjee. Pet food maybe cheaper, too. The agreement has reduced the duty on olive oil, margarine and other vegetable oils from up to 45% to nil. Almost all olive oil consumed in the country is imported, with consumption at around 10,000 tonnes annually. Olive oil consumption in country is still limited, particularly for food use, and a tweak in the duty could boost consumption. Kiwi and pears which currently have a tariff of 33%, will now attract 10% under a specific quota.India has secured preferential market access for its agricultural exports, boosting competitiveness for processed foods, tea, coffee, spices, ghee, table grapes, gherkins and cucumbers, sheep and lamb meat, sweet corn, dried onion, and other products.Vishal Gupta, president Indian Olive Association, said the industry would pass on benefits of any duty reduction to consumers. Borges and Figaro are among market players. Duty on imported processed food from EU will be reduced from up to 50% to nil. Sudipta Bhattacharjee, partner at law firm Khaitan & Co, said for Indian consumers, aspirational consumer products from EU are expected to get cheaper over next five years.
