Free trade agreement lifts hopes of India-EU organic food players

Organic food traders from India and the European Union are bullish on the recently announced free trade agreement, saying it will expand market access on both sides and create significant opportunities for the sector.

Organic food traders from India and the European Union are bullish on the recently announced free trade agreement, saying it will expand market access on both sides and create significant opportunities for the sector. About 2,200 players from the sustainable food sector, including over 100 from India, are exhibiting their products at the four-day BIOFACH 2026, which is the world's leading trade fair for organic food, at the Exhibition Centre Nuremberg. The fair comes at an opportune time, with India and the 27-nation European Union announcing the conclusion of negotiations for a free trade agreement on January 27 after nearly two decades of talks. It is likely to be signed and implemented in about a year. According to experts from the organic food sector, the agreement opens up USD 60 billion worth of opportunities for Indian organic product exporters in the EU. The agreement also provides a market of 140 crore consumers to the EU countries. Under the pact, both sides will eliminate and reduce import duties on hundreds of goods to promote bilateral trade. ''The sector has huge opportunities for both sides,'' Chairman of the Agricultural and Processed Food Products Export Development Authority (APEDA) Abhishek Dev said. India marked a significant presence as the ''Country of the Year'' at the BIOFACH. The APEDA, under the commerce ministry, is organising India's participation at the fair, highlighting the country's rich agricultural heritage and its growing stature as a reliable global supplier of organic products. Trade visitors are being provided insights into Indian organic products, value creation models and partnership opportunities, he said. India's organic food exports in 2024-25 was USD 667 million. The India Country Pavilion was inaugurated by Commerce Secretary Rajesh Agrawal, in the presence of Manipur's Additional Chief Secretary Vivek Dewangan; Minister (Personnel), Embassy of India, Berlin, Mandeep Singh Tuli; and Joint Secretary, Ministry of Cooperation, Raman Kumar. Companies participating in the fair, ranging from organic juice and snack makers to grain producers and non-alcoholic beverage firms, said in one voice that the pact will help boost trade in the segment. Several firms from regions like France are aggressively looking for local partners in India to sell their goods. ''If demand increases in India, we can start manufacturing in India,'' a snack maker said. However, both the regions have to work on the certification issues which are creating a problem at present in exporting goods, Nagendra Kumar H, CEO and Co-Founder Rajamudi, said. The Karnataka-based firm is engaged in the business of organic sites, herbs and grains. ''The FTA will help in increasing exports to the EU, but the government has to work on resolving the compliance burden issues of exporters in the EU. We can cater to the demand of the Indian diaspora in the EU,'' Kumar said, adding his company is exporting to Ireland, Germany and Netherlands. Maharashtra-based organic fruits juice maker RUS Organic Founder Ujvala said there is a huge demand in Europe for such products. ''At present, we are exporting to Israel and Dubai. We are looking to raise Rs 3 crore for further expansion. I have already spent about Rs 20 crore so far. We want to double our capacity from the current four lakh bottles per month,'' Ujvala said. The startup firm, which started operations in 2019, is sourcing fruits from different states of India. She added that the fast growing demand in the global markets will help the company boost its turnover. Rejaiv MD KS Singhal, who is working in the organic food sector, said the pact will help increase reach of Indian goods in the EU. Firms from Europe too are optimistic that the 140 crore consumer base in India offers huge business opportunities for them. Moldova-based lavender oil makers Floral Remedy founder Stela Melnic said they are keen to export to India. ''The oil is used in the cosmetic industry. We are planning to export to India. Easy certification processes can help us a lot,'' she said. Austria-based organic beverages maker firm Hollinger MD Axel Fila said he has had ''good'' meetings with some Indian companies and his firm is exploring opportunities to start exports to India by taking benefits of this agreement. ''There are certain issues at the certification front. EU certificates are not accepted in India. Both sides need to work on this,'' he said. The APEDA chairman said the Indian government is taking steps to strengthen organic certification and testing laboratories. Companies from other nations such as from south east Asia and Africa too want to increase their organic products exports to India. South-Africa-based essential oil makers Rosehip Farm said that their product is used in both cosmetics and medicines industry and they are looking at the Indian market. ''At present we are not exporting to India, but we definitely look at entering India,'' Rosehip Farm owner Celeste Gericke said.

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