Grains and oils find fertile ground across EFTA

Nordic markets present unexpected scale for Indian animal feed exports. Agriculture shipments including guar gum, basmati rice, grapes, and pulses reach $72.37 million through TEPA benefits, but the story deepens when examining specific flows to Norway and Iceland — where feed ingredients command premium prices in harsh Arctic conditions. Norway dominates the Nordic-Indian animal feed trade at $154 million, while Iceland's modest $21,534 serves as a testing ground for new supply chains. India exports agriculture and allied commodities to Norway, while marine products and dairy products are imported from Norway. Both markets operate under TEPA, which covers 92.2 percent of tariff lines, transforming feed costs for Nordic livestock operations.

Norway's Feed Revolution

Norwegian salmon exports see sharp rises as bilateral trade between India and Norway grew from $1.05 billion in 2019-20 to $1.20 billion in 2023-24, creating demand for high-protein feed supplements. India is the world's top milk producer, and as breeds with better genetics replace traditional cows, compound feed adoption may increase at an even quicker pace. Ruchi Soya, one of the oldest names in the soyabean industry, is not only a large soyabeans dealer in India but also a leading producer of soya oil and derivatives. The company targets Nordic markets where animal feed comprises de-oiled rice and soyabean, while poultry is fed maize, jowar, wheat, soy and their concentrates.

Iceland's Experimental Gateway

Iceland's tiny feed trade masks strategic importance as Iceland has eliminated high tariffs on chocolates, confectionery, and fresh produce. This Nordic island nation tests Indian suppliers' ability to handle extreme logistics — shipping feed ingredients across Arctic conditions where traditional suppliers struggle. Iceland has already made a modest beginning with an investment of US$30 million in the fisheries sector in Maharashtra, with initial investments expected to grow into a much larger wave of investments in India. Feed requirements for Iceland's emerging aquaculture sector create opportunities for Indian suppliers willing to navigate complex cold-chain logistics.

Switzerland's Aggregate Context

Switzerland's broader agricultural trade of $397.4 million provides scale comparison. Switzerland and Norway together account for over 99 percent of India's agri-exports to the EFTA region, having removed import duties on fresh grapes, nuts, seeds, and processed vegetables. Swiss buyers seek consistent feed ingredient quality for their precision livestock systems.

Supply Chain Origins

India's largest producing states include Madhya Pradesh, Maharashtra, and Rajasthan, which are also hubs for leading soyabeans manufacturers who process and supply soybeans domestically and internationally. Indore emerges as a critical hub — FIEO maintains operational chapters in Indore, alongside other central business locations — where processors aggregate soymeal and other feed components. Adani Wilmar already had eight seed crushing units across India with daily capacity of 7,400 tonnes, having acquired a two-thirds share in Ruchi Soya, India's biggest soybean processing company. This industrial capacity serves both domestic needs and export opportunities to EFTA markets.

"India's animal feed market mainly comprises grains like jowar, millets and their cakes, mustard, cotton seeds and their oil cakes."

Jobs and Community Impact

The agriculture sector supports an estimated 4,300 direct jobs per $100 million in exports, with 7,700 additional indirect positions across processing, logistics, and support services. Women comprise roughly 30% of this workforce, concentrated in sorting, packaging, and quality control operations. Rajkot's guar processing cluster employs approximately 1,500 workers directly, with another 2,700 in supporting roles from transport to equipment maintenance. India has established strong markets for cattle and poultry feeds, both growing at 15% and 8-9% respectively with grounds for huge potential in future. Indore's soybean hub generates an estimated 2,800 direct jobs in processing facilities, with India's annual production of soyabeans exceeding 10 million metric tonnes, creating a vast network of dealers who operate at wholesale, retail, and export levels. Small and medium enterprises control roughly 80% of this trade, ensuring benefits reach rural communities.

EFTA-Wide Growth Trajectory

The TEPA agreement will double Norwegian companies in India and could more than double trade between India and Norway in the coming decade. This expansion pattern suggests similar growth across all EFTA markets as the agreement opens up the services sector substantially and provides nearly 100 percent market access across the four EFTA countries. Federation of Indian Export Organisations, set up in 1965 as an Apex Body, organizes country specific programmes and exchanges business delegations with members from various countries. Such institutional support helps smaller feed exporters navigate complex Nordic market requirements and cold-climate logistics challenges.

Data sources: Statistics Norway (SSB) Table 08801, Hagstofa Islands (Statistics Iceland)