India-US Trade Deal to Boost Basmati Rice Exports, Protect Farmers' Interests

Union Agriculture Minister Shivraj Singh Chouhan has assured that the interim framework for the India-US trade agreement protects major Indian crops and dairy products, prioritizing farmers' benefits. He emphasized the deal will open US markets for Indian exports like basmati rice and spices. The agreement involves India reducing tariffs on various US industrial and agricultural goods. Commerce Minister Piyush Goyal also stated the protection of dairy, fruits, vegetables, and grains safeguards domestic farmers and strengthens local agriculture.

Key Points: India-US Trade Deal: Basmati Rice, Farmers Protected

  • Deal protects Indian crops & dairy
  • Opens US market for basmati rice & spices
  • Tariffs cut on many US goods
  • Framework leads to full trade agreement
  • Govt says farmers' interests safeguarded
3 min read

"Basmati rice will rock the US": Shivraj Singh Chouhan assures India-US deal favours farmers

Agriculture Minister Shivraj Singh Chouhan assures the India-US trade framework protects crops and dairy, opening US markets for Indian basmati rice and spices.

"Our basmati rice will rock the US. - Shivraj Singh Chouhan"

Sehore, February 7

Union Agriculture Minister Shivraj Singh Chouhan on Saturday assured that the government has protected all the major crops and dairy products, prioritising the benefits of farmers in the interim framework for the US-India trade agreement.

Shivraj Singh Chouhan also emphasised that the deal would also open US markets for Indian exports, saying, "Our basmati rice will rock the US."

"There's going to be a lot of benefit. It is in the favour of farmers and people of India. We have protected all the major crops and dairy products. On the other hand, farmers will get markets for export. Our Basmati rice will rock the US. Our spices will go there. This is in the best interest of farmers," the Agriculture Minister told reporters.

Shivraj Singh Chouhan's comments came as he was interacting with farmers in Sehore district of Madhya Pradesh.

India and the US announced a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade. The joint statement said that the framework reaffirms the countries' commitment to the broader Bilateral Trade Agreement (BTA) negotiations, launched by President Donald Trump and Prime Minister Narendra Modi on February 13, 2025, which will include additional market access commitments and support more resilient supply chains.

According to the statement, India will eliminate or reduce tariffs on all US industrial goods and a wide range of food and agricultural products, including dried distillers' grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.

Union Commerce Minister Piyush Goyal has also underscored the government's commitment to farmers, stating that dairy, fruits, vegetables, spices, and other grains have been protected in the India-US trade deal to safeguard domestic farmers' interests.

"Farmers Safe, Country Developed... In the India-US trade agreement, dairy, fruits, vegetables, spices, and other grains have been protected. This will safeguard the interests of domestic farmers, strengthen local agriculture through preferential access to such a large market, and mark another powerful step forward in the direction of a self-reliant India," he said.

Piyush Goyal further shared the list of dairy, fruits, vegetables, and spices that the government has protected in the trade deal.

The vegetables which can't be imported include frozen vegetables like potatoes, peas, cucumbers and gherkins, beans, other legume vegetables (peeled or unpeeled), temporarily preserved vegetables, like cucumber and mushrooms (Agaricus species) and mixed canned vegetables.

The dairy products protected under the agreements include: milk (liquid, powdered, candied, etc.), cheese (mozzarella, grated/powdered, etc.), cream, butter oil, yoghurt, cheese and other products, buttermilk, whey products, butter, and ghee.

The government has also ensured the protection of grains, which include ragi, wheat, copra, amaranth, maize, millet, rice, barley, oats, sorghum, fine flour, and flour (wheat, corn, rice, millet, etc.)

The spices protected under the deals are: black pepper, Long, dried green chilli, cinnamon (bark, flowers, etc.), coriander, cumin, asafoetida, ginger, turmeric, celery, fenugreek, Cassia, Mustard, rye, husk, and other powdered spices.

Both sides said they would promptly implement the framework and work toward finalising the Interim Agreement, with a view to concluding a comprehensive and mutually beneficial Bilateral Trade Agreement in line with the agreed roadmap.

- ANI

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Reader Comments

P
Priya S
"Our basmati rice will rock the US" – I love the confidence! But as a consumer, I'm more relieved that dairy, vegetables, and staples are protected. We can't have our local markets flooded with cheap imports that hurt our own farmers. A balanced deal is key.
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Rohit P
The protection list for grains and spices is very comprehensive. Turmeric, cumin, black pepper – these are our pride. Glad the government held its ground on these. Now, the challenge is ensuring our farmers get the right price and aren't exploited by middlemen in this new export chain.
S
Sarah B
As someone living in the US, I can't wait! Authentic Indian Basmati and spices without the huge import markup would be amazing. The demand is definitely here. Hope the logistics and quality control are managed well to make this a success.
V
Vikram M
Respectfully, I have some doubts. We are reducing tariffs on many US goods. What if their processed fruits, nuts, or wine start affecting our local markets indirectly? The "protection" needs constant monitoring. Promises are good, but implementation is everything. Jai Kisan.
K
Kavya N
Good step for Atmanirbhar Bharat! Exporting value-added agricultural products is better than just raw materials. But alongside exports, we must also focus on improving cold storage and food processing infrastructure here. Otherwise, the farmer's gain will be limited.

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