India is committed to protecting the interests of its farmers during ongoing trade negotiations with the United States concerning agricultural market access, stated Agriculture Minister Shivraj Singh Chouhan. He emphasized that India will carefully assess the potential gains and losses before finalizing any agreement with the U.S.
Chouhan's comments come as India and the U.S. continue discussions aimed at expanding agricultural trade. The U.S. has been seeking reduced tariffs and improved market access for its agricultural products in the Indian market. However, India remains cautious about fully opening its agriculture and dairy markets, citing the impact on millions of farmers who cannot compete with heavily subsidized American products.
"Our priority is to protect the interest of our farmers. India will not work closing its eyes. We will assess our gains and losses. Keeping that in mind, an agreement will be finalized," Chouhan told PTI in an interview. He was responding to a query on how India would safeguard farmers amid U.S. pressure for greater market access for American agricultural and horticultural products.
The U.S. has criticized India's trade policies for limiting agricultural imports through high tariffs and restrictions on genetically modified seeds. It wants better access for its key agricultural products like soybeans and corn, which are also major exports to China. Washington has raised concerns about India's average applied tariff rate of 39% on farm goods, with duties as high as 45% on vegetable oils and around 50% on apples and corn. The United States believes India's high tariff rates are a major trade barrier for U.S. agricultural and processed food exports such as poultry, potatoes, citrus, almonds, pecans, apples, grapes, canned peaches, chocolate, cookies and frozen French fries.
India, on the other hand, is resisting U.S. pressure to lower tariffs on staples like rice and wheat, while signaling its willingness to cut tariffs on other farm goods such as almonds, cranberries, quinoa, oatmeal, pistachio, and walnuts. Corn and soybeans are expected to feature in the negotiations, with the United States eager to sell these two agricultural products to India. India needs corn to boost ethanol production, but its regulations prohibit ethanol made from imported grains. Additionally, while India does not allow genetically modified (GM) food crops, and the US primarily grows GM corn.
According to a NITI Aayog report, the value for U.S. agriculture and allied product exports to India was about USD 2.22 billion in the triennium ending 2024. In the same period, India exported USD 5.75 billion worth of agricultural products to the U.S. India's main agricultural exports to the U.S. include frozen shrimp, basmati rice, spices, processed cereals, and other value-added products.
The negotiators are expected to agree on the framework for the broad contours of the first phase of the bilateral deal, expected to be signed by fall (September-October) 2025. The current talks are part of efforts to hammer out a limited trade agreement that could lead the U.S. to revoke 26% reciprocal tariffs on Indian goods - tariffs that have been paused along with those on several other U.S. trading partners for 90 days, the second official said.
"The discussions are ongoing between India and the US. One thing is clear, we will protect the interest of our farmers. When we talk about two nations, we need to see the overall trade," the minister added.
