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EU-India Trade Deal to Lower Pet Food Prices in India

  //food-wine.news-articles.net/content/2026/01/28 .. rade-deal-to-lower-pet-food-prices-in-india.html
  Published in Food and Wine on Wednesday, January 28th 2026 at 9:38 GMT by moneycontrol.com
      Locales: EUROPEAN UNION, INDIA

New Delhi, January 28, 2026 - While headlines regarding the ongoing India-European Union (EU) free trade agreement (FTA) have largely focused on the potential impact on alcoholic beverages and automotive sectors, a significant, yet often overlooked, consequence of the deal promises to be more affordable pet food for Indian households. The agreement, years in the making, is poised to reshape the landscape of the Indian pet care market, offering benefits far beyond simply lower prices for consumers.

Currently, the Indian pet food industry faces considerable headwinds due to substantial import duties on key ingredients and finished products. These tariffs dramatically inflate the cost of pet food, making it a relatively expensive commodity for a growing, but still price-sensitive, market. The FTA aims to dismantle these trade barriers, specifically targeting the reduction, and potential elimination, of import duties on pet food.

A Growing Market & The Price Barrier

The Indian pet care market has experienced robust growth in recent years, mirroring a global trend driven by increasing pet humanization. More and more Indians are viewing their pets as integral family members, leading to a willingness to spend more on their health and well-being. However, the high cost of quality pet food has remained a significant impediment to wider adoption of premium brands and nutritional options. A recent study by the Pet Food Association of India suggests that price sensitivity is the primary factor preventing 30% of pet owners from switching to higher-quality food.

This FTA presents a unique opportunity to address this challenge. Lower import duties will translate directly into reduced retail prices, making premium and specialized pet food accessible to a broader segment of the population. This isn't simply about convenience; it's about improving the health and longevity of companion animals. Better nutrition contributes to fewer vet visits, reduced health complications, and an overall enhanced quality of life for pets.

Ripple Effects Across the Supply Chain

The benefits of reduced pet food prices extend far beyond the consumer. The entire supply chain - from international suppliers of raw materials to Indian distributors, retailers, and even veterinary practices - stands to gain. Lower input costs for manufacturers will allow for increased production and potentially even expansion of local facilities. Distributors will see increased volume, and retailers will experience a surge in demand.

Veterinary doctors, too, will benefit indirectly. Healthier pets, thanks to improved nutrition, require fewer medical interventions. While this might seem counterintuitive, it allows vets to focus on preventative care and overall wellness, rather than solely treating illnesses caused by nutritional deficiencies. Furthermore, a larger and more financially secure pet-owning population translates to a greater demand for comprehensive veterinary services.

The FTA: A Long Road to Agreement The EU-India FTA is an ambitious undertaking, encompassing a wide range of sectors beyond pet food, including automobiles, textiles, and the aforementioned wines and spirits. Negotiations have been protracted, hampered by disagreements over issues such as intellectual property rights, data localization, and agricultural subsidies. The initial talks began over a decade ago, with several rounds of negotiations yielding limited progress.

However, recent months have seen a renewed sense of urgency and a willingness from both sides to compromise. While specific details regarding the pet food provisions are still being finalized, industry analysts anticipate a phased reduction in import duties over a period of five to seven years. This gradual approach is designed to allow Indian manufacturers time to adapt to the increased competition from EU imports.

The successful conclusion of the India-EU FTA, with its provisions for reduced pet food tariffs, could signify a turning point for the Indian pet care industry. It's a clear demonstration that trade agreements aren't just about big-ticket items; they can also have a tangible, positive impact on the everyday lives of millions of pet owners and the well-being of their beloved companions.