Ahmedabad: The recently signed India–European Union Free Trade Agreement (India–EU FTA) is expected to significantly improve market access for Indian spice exporters by providing zero-duty entry into EU markets, according to the Federation of Indian Spice Stakeholders (FISS).“The removal of customs duties of up to 8% on several spice products will enhance the competitiveness of Indian exports in one of the world’s most quality-conscious markets,” FISS said in a statement.
However, spice traders have expressed concerns over unresolved uncertainties surrounding the agreement.“Compliance with stringent EU food safety and quality norms remains critical. Non-tariff barriers, including border rejections due to regulatory non-compliance, continue to pose a persistent challenge for Indian spice shipments. We hope these issues will be addressed through enhanced engagement between Indian authorities and EU regulators under the FTA framework,” said U Karthik, co-chairman, FISS.The EU remains a major market for Indian spices, driven by demand from food processing companies, retail chains, and ethnic food segments. Industry sources expect the FTA to improve trade predictability through progressive tariff liberalisation and closer regulatory cooperation. The agreement also assumes significance as Indian exporters seek to diversify markets amid higher tariffs in the US.During 2024–25, India exported 17.99 lakh tonnes of spices and spice products valued at $4.72 billion, compared with 15.40 lakh tonnes valued at $4.46 billion in 2023–24.The FTA is expected to particularly benefit cumin traders in Gujarat, which accounts for a dominant share of India’s cumin production. The crop is concentrated in districts across north Gujarat and traded extensively through Unjha, the country’s largest cumin trading hub. Any improvement in market access and price realisation is therefore expected to have a direct bearing on farm incomes, market arrivals, and trade volumes in the state.
