India Secures Duty-Free Access for Agricultural and Processed Food Items to Oman Under New Trade Pact

India's agricultural and processed food exports, including natural honey, fresh eggs, cashew nuts, potatoes, boneless meat, and bakery items, will now enjoy duty-free access to Oman. This development follows a newly signed trade agreement aimed at boosting these exports. Oman has agreed to eliminate duties on various animal products such as cheese, curd, milk, cream, frozen fish, butter, meat, yoghurt, and processed foods like bread and pastries.

Oman's decision to remove duties on these items is part of the Comprehensive Economic Partnership Agreement (CEPA) signed in Muscat. The agreement is expected to positively impact India's agricultural and processed food sector. An official noted that duty concessions would align Indian products with major agricultural exporters to Oman or trade partners of Gulf countries like the US, Singapore, and EFTA nations.

Impact on Indian Exports

Key Indian export items benefiting from this deal include basmati rice, parboiled rice, bananas, potatoes, onions, soybean meal, sweet biscuits, cashew kernels, mixed condiments, butter, fish body oil, prawn and shrimp feed, frozen boneless bovine meat, and fertilised eggs. The zero-duty access for fresh eggs will solidify India's 98.3% share in Oman's egg imports.

Currently, these items face duties ranging from 5% to 100% in Oman. With the new agreement in place, India gains a competitive edge over regional rivals. For instance, duty-free access for guargum strengthens India's dominant 93.6% share in Oman's USD 2.18 million guargum market.

Benefits for Omani Imports

Indian consumers will benefit from cheaper dates as India offers zero-duty access to 2,000 tonnes annually. Additionally, India will provide concessions on Oman's traditional products like Gum Arabica and Frankincense. These are used in food, medicines, cosmetics, incense and perfumes.

Oman imports animal products worth about USD 1.5 billion annually. India's shipments average around USD 71.74 million each year. Similarly, Oman imports processed food products worth approximately USD 1.3 billion yearly. India's exports of these items amount to about USD 45.76 million annually.

Trade Figures and Market Share

The Gulf nation imports animal and vegetable fats and oils valued at about USD 414 million annually. India exports these items worth approximately USD 10.26 million each year to Oman. Oman's agricultural imports increased from USD 4.51 billion in 2020 to USD 5.97 billion in 2024.

In 2024, India held a 10.24% share in Oman's agricultural imports, ranking second among suppliers. The country's agricultural exports to Oman rose from USD 364.67 million to USD 556.34 million over this period, achieving an 11.14% compound annual growth rate (CAGR).

This trade pact aligns Indian products with those of major agricultural exporters or trade partners of Gulf countries like the US and Singapore. The European Free Trade Association (EFTA), comprising Switzerland, Norway, Iceland and Liechtenstein also has a trade pact with India.

With inputs from PTI