New Delhi: A host of India’s agricultural and processed food items, such as natural honey, fresh eggs, cashew, potatoes, boneless meat and bakery products, will get duty-free access to Oman under the newly signed trade pact, giving a boost to exports of these goods.
Oman has offered to remove duties on various animal products, such as cheese, curd, milk and cream, frozen fish, butter, meat, yoghurt, processed food like bread, pastry, cakes, chocolate, sugar confectionery, and mineral water; and animal and vegetable fats and oils.
The major gains for India’s export items include basmati rice, parboiled rice, bananas, potatoes, onions, meal of soyabean, sweet biscuits, cashew kernels, mixed condiments, butter, fish body oil, prawn and shrimps feed, frozen boneless bovine meat, and fertilised eggs.
Zero-duty access for fresh eggs will cement India’s 98.3 per cent share in Oman’s egg imports, making Oman its largest export destination and giving India a clear price edge over regional competitors, an official said.
As per the pact, duty-free access for guargum reinforces India’s dominant 93.6 per cent share in Oman’s USD 2.18 million guargum market and provides a competitive edge over China while placing India at par with the US.
At present, these items attract duty in the range of 5-100 per cent in Oman.
On the other hand, Indian consumers will get cheaper dates from Oman, as India will provide zero-duty access to 2,000 tonnes of the commodity every year.
India will also give concessions to Oman’s two traditional products, Gum Arabica (used in food, medicines and cosmetics) and Frankincense (used in the incense and perfume sector).
These are part of the Comprehensive Economic Partnership Agreement (CEPA), which was signed on Thursday in Muscat.
Oman has imported agricultural and processed food products worth USD 6 billion in 2024. “India and Oman CEPA is expected to have a significant positive impact on the Indian agricultural and processed food sector,” an official said.
Duty concessions, the official said, will bring Indian products at parity with major agri exporters to Oman or trade pact partners of the Gulf countries like the US, Singapore, and EFTA nations.
The European Free Trade Association (EFTA) is a group of four non-EU European nations (Switzerland, Norway, Iceland, and Liechtenstein). India also has a trade pact with this bloc.
Oman imports animal products worth about USD 1.5 billion every year. On average, India’s shipments stood at about USD 71.74 million annually.
Similarly, Oman imports processed food products worth about USD 1.3 billion every year. India’s exports of these items are worth about USD 45.76 million annually.
The Gulf nation imports animal and vegetable fats and oils worth about USD 414 million. India exports these items worth about USD 10.26 million every year to Oman.
Oman’s agricultural imports rose from USD 4.51 billion in 2020 to USD 5.97 billion in 2024.
India held a 10.24 per cent share in Oman’s agricultural imports in 2024, ranking second among suppliers. The country’s agricultural exports to Oman increased from USD 364.67 million to USD 556.34 million, achieving a 11.14 per cent CAGR.
