Farmers will benefit
The historic ‘Comprehensive Economic and Trade Agreement’ (CETA) signed between India and Britain under the leadership of Prime Minister Narendra Modi has now come into force. This agreement is being considered a huge milestone for the Indian agriculture sector. On the one hand, this will open up a huge market in Britain for Indian agricultural products, while on the other hand, the country’s food security and the interests of the farmers will also be completely protected.
These Indian products will get direct benefit
Under this agreement, Britain will give duty-free (without any customs duty) entry to Indian agricultural products in its market. These sectors of India are expected to benefit the most from this:
- Fresh fruits and vegetables: especially fresh grapes, onions and mixed vegetables from Maharashtra.
- Processed foods: Bakery items such as bread, pastries, cakes, preserved vegetables, sauces, and other processed food products
- Other products: Natural honey, fruits and nuts
Direct competition in the $90 billion market
Britain imports agricultural and processed food products worth about $ 90 billion (more than Rs 7.5 lakh crore) every year. By getting zero-duty access, Indian exporters will now get a direct edge over their competitors (like Vietnam or other countries) in the global market.
The fortunes of Agri-clusters of these states will shine.
The biggest benefit of this deal is going to be the major agricultural states of the country. This will give a huge boost to the main agri-export clusters (agriculture export centres) of Maharashtra, Gujarat, Andhra Pradesh, Tamil Nadu and Punjab. It is expected that this will create new employment opportunities on a large scale in rural areas, especially in FPOs (Farmer Producer Organizations), packhouses, food processing units and logistics (transportation) sectors.
Complete protection of the interests of Indian farmers. Keeping in mind the interests of small and medium farmers of the country, the Government of India has kept some very sensitive agricultural products out of this agreement, that is, goods coming from the UK will not be exempted from them.
- Products to be kept safe: Dairy products (milk, cheese, butter, ghee), cereals, edible oils, fruits like apple, pineapple, orange and pomegranate. Apart from this, vegetables like tomato, garlic, cabbage, peas and pumpkin are also completely safe.
- Special exemption: All agricultural products have been given zero-duty access, but chicken, pork, eggs, rice and sugar have been kept out of it so that there is no impact on the country’s food security and rural economy.
This agreement is a big step towards realizing the dream of self-reliant India and doubling the income of Indian farmers. This will not only increase India’s exports, but will also strengthen the credibility of Indian agriculture at the global level.
