New Delhi, India has fully protected sensitive agricultural and dairy products such as corn, wheat, rice, soy, chicken, milk, cheese, ethanol, tobacco, some vegetables and meat, as the US has no tariff exemptions on these products under the trade agreement.
India fully protects sensitive wheat, rice, poultry under trade agreements with the USIndia and the United States on Saturday announced that they have reached the framework of an interim trade agreement. Under it, the US will reduce tariffs on Indian goods to 18 percent from the previous 50 percent.
“The agreement reflects India’s commitment to protect farmers’ interests and sustain rural livelihoods by fully protecting sensitive agricultural and dairy products including maize, wheat, rice, soy, poultry, milk, cheese, ethanol, tobacco, some vegetables and meat,” the commerce minister said in a social media post.
These products are sensitive as they involve the livelihood of small and marginal farmers in the country.
In other free trade agreements as well, India has not exempted import duties on sensitive agricultural and dairy products. It recently finalized FTAs with the European Union, the United Kingdom and Australia.
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Agriculture and related activities such as animal husbandry form the backbone of India’s rural economy, providing employment to over 700 million people. Unlike developed economies, where agriculture is highly mechanized and corporatized, in India it is a livelihood issue.
India’s agriculture sector is currently protected by moderate to high tariffs or import duties and regulations to protect domestic farmers from unfair competition.
US agricultural exports to India in 2024 were USD 1.6 billion. Key exports include almonds; Pistachio, apple, ethanol.
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With more than 50 percent of India’s population depending on agriculture for its livelihood, India considers the entire sector as sensitive. Imports or tariffs are particularly important for staple crops, dairy and key farm products that sustain rural livelihoods.
In fiscal 2025, India’s total agricultural exports are expected to increase from USD 45.7 billion to USD 51 billion in 2023-24, with a portion going to the US. India’s total exports in FY25 were USD 437 billion.
India aims to reach USD 100 billion in combined exports of agriculture, marine products and food and beverages over the next four years. Major exports include tea, coffee, rice, some cereals, spices, cashews, oilseeds, oilseeds, fruits and vegetables.
According to a joint statement issued by both countries, India will eliminate or reduce tariffs on a wide range of US food and agricultural products, including dry distillers’ grains, red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine and spirits and additional products.
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