India: UK FTA creates export opportunities for onions, while logistics remain a key challenge

• India-UK FTA improves market access for onion exports, with quality and logistics remaining key growth drivers
• Delayed red onion arrivals and longer transit times are expected to support domestic and export markets

The India-UK Free Trade Agreement (FTA) is expected to improve export opportunities for Indian onions by enhancing market access to the UK. While the agreement provides a favourable platform for exporters, industry participants believe that long-term success will depend on maintaining consistent quality, meeting UK retail and food safety standards, and ensuring efficient logistics. Meanwhile, a 30-45-day delay in the arrival of India’s next red onion season is likely to support both domestic and export market prices over the coming months.

FTA enhances India’s competitiveness in the UK market

According to industry participants, the India-UK FTA could improve India’s competitive position against major onion suppliers such as the Netherlands and Egypt. The agreement is also expected to help Indian exporters strengthen relationships with UK importers, retailers and foodservice companies as buyers diversify their sourcing.

Beyond fresh onions, the agreement could also create additional opportunities for value-added products, including frozen onions, onion powder and onion flakes, by improving market access for processed onion exports.

Longer transit times increase focus on quality and storage

Despite improved market access, exporters continue to face logistical challenges. Transit times to the UK have increased to around 40-48 days due to ongoing geopolitical disruptions, making post-harvest handling, storage and quality preservation increasingly important during shipment.

In addition, a 30-45-day delay in India’s upcoming red onion season is expected to keep domestic availability relatively tight, supporting prices in both local and export markets in the near term.

Outlook

The India-UK FTA is expected to gradually strengthen India’s onion exports to the UK by improving market access and enhancing competitiveness. However, the pace of export growth will largely depend on exporters’ ability to maintain product quality, comply with UK standards and manage longer shipping durations efficiently, while delayed domestic supplies are likely to keep market sentiment firm in the coming months.