Request to Consider Easing Cocoa Imports in India: Implementation of ASEAN FTA – CAROTAR Rules

A representation on easing cocoa imports in India and implementation of ASEAN FTA – CAROTAR Rules was sent to Dr. Subrata Gupta, Secretary, Ministry of Food Processing Industries, Government of India on March 27^th, 2025. India’s chocolates market – growing at a CAGR of 8.8% and projected to reach $4 billion by 2028 – relies heavily on cocoa as the central ingredient. Although grown in certain pockets in southern India, the demand for cocoa far outweighs the supply, with the country dependent on imports for more than 85% of its demand. Cocoa is also used as a raw material in the making of food products like biscuits, ice cream, cake premixes, bakery ingredients, breakfast cereal, and beverages, etc. Currently, cocoa value chain players import cocoa products (in the form of butter, powder, and liquor) from ASEAN countries. These companies are eligible to avail the benefits of preferential rate of customs duty under the ASEAN – India FTA, subject to meeting the norms for value addition and rules of origin. Towards this, companies have been providing the required Certificate of Origin (COO) issued by the exporting country to avail of the duty exemption benefit under the FTA and the recent Customs Administration of Rules of Origin under Trade Agreements Rules, 2020 (CAROTAR). It has been observed that across all cocoa importers, there seems to be a blanket instruction to allow imports of all cocoa products only via provisional clearance and on submissions of a bank guarantee causing delays. Such delays impact the financial and operational performance of the companies. A detailed note on the same was submitted for necessary action.