India maintains a firm stance on protecting dairy and agricultural products in ongoing trade negotiations, prioritising farmer interests.
India has succeeded in safeguarding its core interests in the dairy and farm sectors by maintaining protection on the import of corn and soyabean, both genetically modified (GM) crops widely grown in the US. At the same time, the country has agreed to reduce or remove tariffs on a broad range of American food and agricultural products, including dried distillers’ grains (DDGs) and red sorghum used for animal feed, tree nuts, fresh and processed fruits, soyabean oil, as well as wine and spirits.
India has also committed to addressing long-pending non-tariff barriers affecting US food and agricultural exports. While the India–US joint statement does not clearly define these non-tariff issues, they largely refer to India’s restrictions on GM crops such as maize and soyabean, and dairy products derived from cattle fed with animal-based inputs such as blood meal and internal organs. Commerce and Industry Minister Piyush Goyal clarified that no genetically modified products will be allowed into India and that no concessions have been granted on dairy, maize, soya meal, sugar, millets, or citrus fruits.
The joint statement also referred to “additional products” in the context of tariff reductions or eliminations on US agricultural goods, though this term remains undefined. This leaves room for further negotiations beyond the interim agreement. Under such discussions, India could seek greater access to the US market for its strong-performing exports such as shrimp, fish, spices, rice, tea, coffee, and rubber.
Among the items India has agreed to import, tree nuts—such as almonds, pistachios, and walnuts—and fresh fruits, mainly apples, are not expected to adversely affect Indian farmers. These crops are grown on limited acreage domestically, and local production does not meet rising demand. Moreover, safeguards such as import quotas and minimum import prices remain in place. A distinction has also been made between unshelled and shelled nuts, with deeper tariff cuts on unshelled varieties to encourage value addition within India.
On apples, the agreed import quota is lower than current imports from the US. Import duties of 20% along with a minimum import price of ₹80 per kg are expected to keep the landed cost at around ₹100 per kg, compared to about ₹75 earlier, according to the minister.
On the export front, several Indian agricultural products will benefit from zero reciprocal tariffs and the removal of additional duties. These include spices, tea, coffee, coconut and coconut oil, and cashew. The minister reiterated that no tariff concessions have been extended to agricultural products from US farmers entering the Indian market.
News Courtesy : Times of india