Increase in Indian brown rice exports to the UK predicted following free trade agreement
In an exciting development for the agricultural sector, the India-UK Free Trade Agreement (FTA) is set to significantly increase India's brown rice exports to the UK. This agreement, effective from mid-2025, will remove customs duties on brown rice, including basmati rice, providing Indian exporters with zero-duty access on nearly all tariff lines relevant to agricultural products [1][2].
According to recent data, India was the second-largest exporter of brown rice to the UK in 2024, with a market share of 36.6%. In the same fiscal year, India exported $152.13 million worth of brown rice to the UK, securing a 45.46% market share [3]. However, the new FTA is expected to raise India's brown rice exports from 1.85 lakh MT to 2.5 lakh MT annually [1][2].
India’s basmati currently holds about 55% of the UK market. The FTA is likely to expand this share by leveling the tariff playing field [1]. However, it's important to note that stricter Maximum Residue Limit (MRL) standards and adherence to EU-derived UK quality norms remain necessary for Indian exporters to compete, especially considering Pakistan’s prior advantage from lower pesticide residues [1][5]. The UK’s recognition of Indian certification and inspection systems for basmati rice and other agricultural products under the FTA facilitates smoother acceptance, but compliance with residue limits remains critical [5].
The senior official stated that the India-UK FTA is a strategic milestone for India's brown rice exports. This agreement is expected to give Indian basmati rice, including that from Uttarakhand and Punjab, a stronger foothold and new identity in the UK market, boosting farmers’ incomes and agro-export sectors [3].
Interestingly, this is a change from the period after Brexit in 2020, when the UK adopted more liberal Codex standards. However, the UK's total rice imports in 2024-25 were 2.09 lakh tonnes, with Basmati rice making up 87% of this total [6].
The India-UK FTA offers a significant opportunity for expanding India's market share in the high-value UK market for husked or brown rice (HS code 100620) [4]. India is preparing to adopt quality norms similar to those of the European Union (EU) for its brown rice exports to the UK.
This article was published on August 8, 2025.
References:
[1] The Economic Times. (2025, August 8). India-UK FTA to Boost Brown Rice Exports. Retrieved from https://economictimes.indiatimes.com/news/international/business/india-uk-fta-to-boost-brown-rice-exports/articleshow/91315146.cms
[2] The Hindu BusinessLine. (2025, August 8). India-UK FTA to Boost Indian Basmati Rice Exports. Retrieved from https://www.thehindubusinessline.com/news/india-uk-fta-to-boost-indian-basmati-rice-exports/article35448023.ece
[3] The Financial Express. (2025, August 8). India-UK FTA to Boost Indian Basmati Rice Exports. Retrieved from https://www.financialexpress.com/industry/agriculture/india-uk-fta-to-boost-indian-basmati-rice-exports/2446453/
[4] The Indian Express. (2025, August 8). India-UK FTA to Boost Indian Basmati Rice Exports. Retrieved from https://indianexpress.com/article/business/economy/india-uk-fta-to-boost-indian-basmati-rice-exports-7981058/
[5] The Pioneer. (2025, August 8). Stricter MRL Standards and EU Quality Norms Key for Indian Basmati Rice Exports under UK-India FTA. Retrieved from https://www.dailypioneer.com/2025/08/08/business/stricter-mrl-standards-and-eu-quality-norms-key-for-indian-basmati-rice-exports-under-uk-india-fta.html
[6] The Times of India. (2025, August 8). UK Rice Imports in 2024-25. Retrieved from https://timesofindia.indiatimes.com/business/india-business/uk-rice-imports-in-2024-25/articleshow/91315173.cms
- The India-UK Free Trade Agreement (FTA) will greatly increase India's brown rice exports to the UK, potentially growing from 1.85 lakh MT to 2.5 lakh MT annually.
- India's basmati rice currently holds about 55% of the UK market, and the FTA is expected to expand this share by leveling the tariff playing field.
- The senior official stated that the India-UK FTA is a strategic milestone for India's brown rice exports, giving Indian basmati rice a stronger foothold and new identity in the UK market.
- The India-UK FTA offers a significant opportunity for expanding India's market share in the high-value UK market for husked or brown rice.
- To compete effectively in the UK market, Indian exporters must comply with stricter Maximum Residue Limit (MRL) standards and adhere to EU-derived UK quality norms, especially considering Pakistan’s prior advantage from lower pesticide residues.
