FTA to make premium food ingredients more accessible

From specialty dairy and cocoa derivatives to gourmet cheese, olive oil and condiments, India’s free trade agreement (FTA) with the European Union announced on Tuesday is expected to make high-quality ingredients more accessible to domestic manufacturers that have historically faced high import costs, industry executives told Mint.

- Sowmya Ramasubramanian

“Specialized ingredients like olive oil, condiments like balsamic vinegar and mustard, dried fruits and tomatoes are certainly going to become cheaper. It will enable better ingredient access and global quality benchmarking,” said Chirag Kenia, founder and managing partner of gourmet food brand Urban Platter.

Lower duties may also open the doors to exclusive partnerships and curated international tie-ups, bringing global appeal to Indian consumers, according to Gaurav Manchanda, founder and director of The Organic World, a Bengaluru-based retailer of premium groceries and packaged food.

“Scale is meaningful only when it strengthens quality and builds long-term consumer trust. Hence, we will consider partnerships that align with our clean-label values and Indian consumption habits,” Manchandasaid, noting that a greater number of international brands will now eye a share of India’s retail market.