Trade agreement removes tariff barrier as Indian exporter reports resilient UK demand despite higher prices caused by conflict in the Middle East
Indian baby corn exports to the UK have remained strong despite supply chain disruptions linked to the conflict in the Middle East, according to Indian fresh produce exporter Kay Bee Exports.
The exporter has reported resilient UK demand following the implementation of the UK-India Comprehensive Economic and Trade Agreement (CETA) on 15 July 2026, which removed tariffs on nearly 99 per cent of Indian exports entering the UK market.
Kay Bee Exports CEO Kaushal Khakhar said the deal created new opportunities for Indian fresh produce exporters, with baby corn particularly well placed to benefit from improved tariff access.
“Now India and Kenya are on the same level,” Khakhar said, referring to the two countries’ competitive positions. “Indian baby corn’s competitiveness relies on the robust dairy industry in India wherein the peeled husk is used as animal fodder. This makes it a resilient and sustainable source for UK retailers,” he added.
The opportunity comes against a difficult backdrop for India’s air-freighted fresh produce sector.
Khakhar said air freight costs have risen significantly in the past six to seven months as disruption in the Middle East has put pressure on air-cargo costs. This has led to increased product prices.
“We did lose business because there are certain price-sensitive products, especially within our ethnic veg range, that customers were not happy to support,” he said.
However, Khakhar said UK retailers have continued to rely on Indian supply of baby corn because of its reliable and consistent supply.
“Baby corn is a mainstay for British retailers, and they rely on Indian production,” he said. “Air freight increases in Kenya and Thailand, the other alternate origins, ensured that Indian baby corn remained competitive.”
Khakhar said the market had now adjusted to higher prices which he described as “the new normal” for the time being.
“We do expect prices to cool down when the conflict resolves and the strait opens,” he said, “but it will take time.”
