This is really interesting news for the olive oil sector the one that comes from Brussels where it was announced the free trade agreement between the European Union and India, a defined agreement “historic, ambitious and commercially significant, the largest of its kind ever signed by either party”. Interesting news because, among the measures foreseen, there is a progressive reduction of duties on European olive oil from 45% to 0% over five years.
A great opportunity therefore opens up for olive oil producing countries, taking into account that 1,4 billion people live in the Asian country and the GDP is constantly and significantly growingIndia's olive oil sector, among other things, is booming, although still starting with modest volumes compared to the Mediterranean giants. The country is transitioning from a pure importer to a small-scale producer, driven by the growing health consciousness of the urban middle class.
Il annual consumption today stands at around 10.000 – 14.000 tons, a figure that shows impressive growth rates (estimated between 9% and 12% per year for the next ten yearsConsumers are concentrated in large cities (such as Delhi and Mumbai) and among millennials. Olive oil is perceived as a "premium" product and an ally against cardiovascular disease and diabetes, which are very common in the country.
A peculiarity of the Indian market is that About 40% of olive oil is not used in cooking, but for cosmetics and massages.i (especially for newborns).
The opportunity, it should be remembered, is on a European scale and there are already other countries, in particular Spain, ready to attack this new market also on the front of quantities and lower prices. Therefore, it will be very important ability of our oil companies to assert the weight of "made in Italy" that everyone recognizes us, even playing as a team through the Consortia dedicated to certified productions.
In addition to olive oil, other Italian agri-food products could find great commercial opportunities, starting with wines whose duties will be halved, from 150 to 75% upon entry into force of the agreement and subsequently 20%. Also processed agricultural products, such as bread and confectionery, they will see theelimination of duties up to 50%.
Meanwhile, the EU and India are also negotiating on a separate agreement on geographical indications (GIs), which will help increase sales of traditional and iconic EU agricultural products in India, such as , “eliminating unfair competition in the form of imitations,” he stressed.
The EU will soon publish the draft negotiated texts. These texts will then undergo legal review and translation into all official EU languages. The Commission will then submit its proposal to the Council for signature and conclusion of the agreement.
Once adopted by the Council, the EU and India will be able to sign the agreements. After signing, the agreement will need to be approved by the European Parliament and the Council will need to decide on its conclusion before it can enter into force. The agreement can only enter into force after ratification by India.
