India's agri, processed food items to get duty-free access to Oman under trade pact

New Delhi, Dec 18 (PTI) A host of India's agricultural and processed food items, like natural honey, cashew, potatoes, boneless meat and bakery products, will get duty-free access to Oman under the newly signed trade pact, which is expected to boost 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.

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.

Likewise, Oman imports animal and vegetable fats and oils worth about USD 414 million. India exports these items to Oman, worth about USD 10.26 million every year. PTI RR BAL BAL