A new sector is emerging in India’s beverage market, centred on a resource dubbed ‘blue gold’. The term refers to the country’s growing production of butterfly pea flower, a plant known for its striking blue pigment and use in teas, cocktails, and health drinks. The industry has attracted the attention of a UK trade envoy, who is currently in New Delhi to negotiate import agreements.
The butterfly pea flower, or Clitoria ternatea, has long been used in traditional medicine and cuisine across Southeast Asia. In India, its cultivation has expanded rapidly in recent years, driven by demand for natural colourants and functional beverages. Producers are now developing a range of products, from ready-to-drink iced teas to alcoholic mixers, leveraging the flower’s antioxidant properties and caffeine-free profile.
Andrew Mitchell, the UK’s trade envoy to India, confirmed on Monday that he is exploring bilateral deals to import Indian butterfly pea flower extracts and finished beverages. “The British market is showing strong interest in natural, plant-based drinks with health claims,” he said during a visit to a processing facility in Karnataka. “We see this as a high-growth area for trade.”
The UK is India’s third-largest export partner for agricultural goods, and the government has prioritised non-traditional crops to diversify its export basket. The butterfly pea flower industry is still nascent, with an estimated annual turnover of $12 million, but analysts project it could triple within five years if export channels are established.
Challenges remain, including inconsistent quality standards and a lack of cold-chain infrastructure. However, the potential for premium pricing in international markets is high. A single kilogram of dried butterfly pea flowers can fetch up to €50 in European health food stores.
New regulations introduced by India’s Food Safety and Standards Authority in January have created a clearer framework for novel food ingredients, providing a boost to the sector. The UK delegation is also examining opportunities for joint ventures in research and development of new beverage formulations.
This development comes as India seeks to reduce its trade deficit with the UK, which stood at £1.8 billion in 2023. Agricultural exports are a key component of the strategy, with the UK importing £600 million worth of Indian food products last year.
The talks are expected to conclude with a memorandum of understanding by the end of the week, outlining pathways for standardisation and tariff reductions. For now, the ‘blue gold’ industry remains a small but promising addition to India’s export portfolio.
