GTRI calls for tighter food-safety regime ahead of India-EU trade pact rollout

GTRI has urged stronger FSSAI-led import testing and traceability before an India-EU FTA takes effect, arguing that lower tariffs could increase exposure for domestic food markets while Indian farm exports continue to face EU border rejections.

— Source publishedTue, 21 Jul, 2026, 16:25 IST·First seen Tue, 21 Jul, 2026, 16:26 IST·Source BL · Consumer & Economy

What happened

GTRI urges India to strengthen FSSAI-led food safety, import testing and traceability before the India-EU FTA takes effect, warning lower tariffs could expose

Key facts

  • 27-nation EU
  • 365 EU food-safety notifications against Indian products
  • EU pesticide use: 2.67 kg per hectare
  • India pesticide use: 0.24 kg per hectare
  • 740 EU food consignments rejected/returned annually by China on average between 2013 and 2019

Why this matters

Deal teams should prioritize targets and partnerships with validated food-safety infrastructure, EU-compliant documentation and resilient domestic supplier networks.

What to watch

  • Release of the India-EU FTA tariff schedules, rules of origin, exclusions, quotas and implementation dates for food categories.
  • FSSAI notifications on enhanced import sampling, residue limits, traceability, laboratory accreditation, labeling or digital documentation.
  • Customs clearance-time data and any increase in food-consignment holds, rejections, recalls or destruction orders.
  • EU border-rejection data for Indian agricultural and processed-food exports, particularly residue, microbiological and certification failures.
  • Retail pricing and assortment moves in imported olive oil, cheese, confectionery, beverages, processed foods and specialty ingredients.
  • Investment by organized retailers, distributors and testing providers in cold chain, supplier audits, batch tracking and compliance systems.
  • Map EU-linked food and ingredient exposure by category, perishability, tariff line and current certification status.
  • Require suppliers and import distributors to provide end-to-end batch traceability, residue-testing records, recall protocols and India-specific labeling documentation.
  • Build a landed-cost model that separates tariff savings from testing, clearance delay, warehousing, spoilage and working-capital costs.
  • Pre-qualify domestic and non-EU alternate suppliers for high-risk imported categories, especially perishables and private-label inputs.
  • Use limited pilots for premium imported assortments rather than broad shelf resets until FTA schedules and FSSAI enforcement protocols are clear.
  • Review private-label contracts for responsibility over failed tests, product withdrawals, customs detention and inventory destruction.

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