New Delhi, Jan. 28 -- India's agricultural and processed food producers will benefit from the India-European Union Free Trade Agreement (FTA), which aims to level the playing field for Indian farmers and agri-based businesses in Europe, while protecting key domestic sectors like dairy, cereals, poultry, soymeal, and certain fruits and vegetables. The agreement is expected to enhance the competitiveness of key Indian commodities, including tea, coffee, spices, fresh fruits and vegetables, and processed food products in EU. The development assumes significance in the backdrop of the EU accounting for 12-13%, or about $4.4-4.8 billion, of India's total agricultural exports of $37 billion by value in FY2024-25. "India has prudently safeguarded sensitive sectors, including dairy, cereals, poultry, soymeal, certain fruits and vegetables, balancing export growth with domestic priorities," India's commerce and industry ministry said in a statement. The development also assumes significance given that agriculture and allied sectors account for around 18% of India's gross domestic product (GDP), with nearly 46% of the country's workforce dependent on agriculture. "Preferential Market Access for agricultural products like tea, coffee, spices, grapes, gherkins and cucumbers, dried onion, fresh vegetables and fruits as well as for processed food products will make them more competitive in the EU," India's commerce and industry ministry said in a statement and added, "This market access will strengthen farmers' realized incomes, reinforce rural livelihoods, and elevate the global competitiveness of Indian agricultural products." This comes against the backdrop of India's farm output expected to grow by 3.1% in the current fiscal, according to the first advance estimates released by the National Statistical Office (NSO). The sector grew by 4.6% in FY 2025, 2.7% in FY24, and 3.5% in FY23. The FTA proposes immediate duty elimination for key Indian exports such as tea, coffee, and spices, along with increased access for fresh fruits, vegetables, table grapes, gherkins, cucumbers and dried onions. Further, for imports, 45% tariffs on olive oil will be eliminated over five years, with preferential access to apples, pears, peaches, and kiwi fruit via Tariff Rate Quotas (TRQs). Tariff Rate Quotas are a trade mechanism that allows a limited quantity of a product to be imported at a lower tariff, while imports beyond that limit face higher duties. "This will strengthen rural incomes, women's participation, and India's position as a premium, trusted supplier in Europe," the commerce and industry ministry's factsheet said. "EU will protect its agricultural sensitivities, which means that no concession will be granted for sugar and ethanol, rice and soft wheat, beef and poultry, milk powders, banana and honey; and well-calibrated quotas will limit imports of table grapes and cucumbers," EU said in a statement. "In addition, as per the SPS chapter, the EU will protect its very high sanitary and phytosanitary standards and the EU's stringent rules on animal and plant health, and food safety will be maintained with no exception," the EU statement added....