India's agricultural interests are fully secure under the newly concluded trade agreement with the United States, according to Union Agriculture Minister Shivraj Singh Chouhan. Addressing the media in New Delhi on Thursday, February 5, 2026, Chouhan emphasized that the deal reflects a "new benchmark of diplomacy, development and dignity," with Prime Minister Narendra Modi ensuring that farmers' interests remained non-negotiable throughout the discussions.
The agreement, finalized on Monday after nearly a year of negotiations, aims to reduce trade barriers between the two countries. A key component of the deal involves the U.S. reducing tariffs on Indian goods from 50% to 18%. While details of the agreement are still emerging, President Trump has stated that India has committed to reducing tariff and non-tariff barriers on American goods to zero and has pledged to purchase over $500 billion worth of U.S. products across various sectors, including agriculture.
Chouhan reassured the public that India's agricultural sector, particularly the interests of farmers and the dairy industry, are fully protected. He specifically stated that staple grains, fruits, major crops, millets, and dairy products remain completely secure and will face no threats under the agreement. The minister also addressed concerns about the entry of foreign products into the Indian market, clarifying that there would be no sudden or disruptive influx. He emphasized that no market segment has been opened in a way that could harm Indian farmers, and all major crops, food grains, fruits, and dairy products remain shielded.
The government narrative emphasizes that the trade deal will create new opportunities for Indian agriculture rather than introduce risks. Chouhan pointed out that reduced tariffs would directly benefit India's exports of rice, spices, and textiles, ultimately benefiting cotton farmers as well. He also noted that India already exports rice to the United States and many other countries, with recent exports reaching approximately ₹63,000 crore.
However, some analysts and opposition groups have voiced concerns regarding the potential impact of the deal. Biswajit Dhar, a trade economist, described the deal as "quite disconcerting for New Delhi". Concerns have also been raised about market access for U.S. agricultural products and the potential for increased competition. Furthermore, global commodity markets are facing downward price pressures due to oversupply and economic slowdowns, which could challenge the economic viability of Indian farmers despite tariff reductions.
Despite these concerns, the Indian government insists that the agreement is a win for Indian farmers, boosting exports and ensuring domestic stability. Commerce Minister Piyush Goyal stated that the U.S. would drop tariffs on India to 18% after a joint statement is issued. The government also highlights that sensitive sectors like dairy, genetically modified crops, and staple foods remain protected.
The coming months will be crucial in determining the true impact of the India-U.S. trade agreement on India's agricultural sector. The specifics of the implemented tariffs and the resilience of the agricultural sector against international market fluctuations will be key factors in determining the agreement's success.