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India's Agri Exports to US Set to Soar with 75% Zero Tariff Access

A new SBI report states that 75% of India's agricultural exports to the United States will now enjoy zero tariff access, which is expected to significantly boost shipments. This duty reduction will enhance the competitiveness of Indian products like rice, spices, tea, and coffee in the US market. The fishery sector, previously impacted by higher US tariffs, is also poised to benefit from a reduced 18% duty. The move is projected to strengthen India's existing agricultural trade surplus of $1.3 billion with the US.

Key Points: India Agri Exports to US Jump with Zero Tariff on 75% Items

  • 75% of India's agri exports to US now at zero tariff
  • India has $1.3B trade surplus in agri trade with US
  • Rice exports hold nearly 25% US import share
  • Fishery sector to recover with lower 18% tariff
3 min read

India's agri export to US on set to Jump as 75% of export items now enjoy Zero Tariff in US: SBI Report

SBI report says 75% of India's agricultural exports to the US now have zero tariff, boosting rice, spices, and fishery sectors significantly.

"agricultural products valued at USD 1.035 bn have assured zero reciprocal tariff - SBI Report"

New Delhi, February 12

India's export to the United States on agricultural commodities is set to witness a significant jump as 75 per cent of such exports will now be at zero tariff, according to a report by SBI.

The report said that India has a trade surplus of USD 1.3 billion in agricultural trade with the US. It noted that India's export of USD 1.36 billion worth of agricultural commodities will receive zero additional US duty access, which will significantly help Indian farmers and exporters scale up shipments.

This reduction in duty will enhance competitiveness of Indian products, expand market access, and help farmers and exporters increase volumes, thereby strengthening India's agricultural trade surplus with the US.

The report said "agricultural products valued at USD 1.035 bn have assured zero reciprocal tariff, which will significantly help Indian farmers and exporters to scale up"

Some of the key agricultural items expected to benefit include rice, spices, oilseeds, tea and coffee. The US import share of Indian rice is almost 24 per cent, which the report said will support Indian farmers. Tea, coffee and spices currently have a share of around 3 per cent, and the new tariff structure is expected to strengthen the plantation economy.

India's fishery sector, which was badly affected by US tariffs earlier, is also likely to benefit. The US imports around 10 per cent from India in this category. The lower tariff of 18 per cent is expected to support the sector and improve export prospects.

According to the data cited in the report, under the category of fish and aquatic invertebrates, US imports from the world stood at USD 18,848 million (18.84 billion), of which USD 1,817 million (1.8 billion) came from India, giving India a 9.6 per cent share.

In rice, US imports from the world were USD 1,378 million (1.3 billion), and USD 341 million were from India, reflecting a 24.7 per cent share.

In coffee, tea, mate and spices, US imports from the world stood at USD 14,026 million (14 billion), while imports from India were USD 396 million, translating into a 2.8 per cent share.

In edible fruit and nuts, US imports from the world were USD 21,522 million (21 billion), with only USD 39 million from India.

In edible vegetables and certain roots, US imports stood at USD 12,402 million (12 billion), with USD 109 million from India.

In prepared vegetables, fruit and nuts, US imports from the world were USD 13,774 million (13 billion), of which USD 192 million came from India.

Overall, total US imports in the selected categories stood at USD 81,950 million (81 billion), while imports from India were USD 2,894 million (2.8 billion), giving India a 3.5 per cent share.

- ANI

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Reader Comments

S
Sarah B
As someone who follows trade closely, this is a significant development. A $1.3 billion surplus is good, but India's share in the massive US import market is still only 3.5%. We need to focus on quality and branding to capture more of that $81 billion pie.
P
Priyanka N
Great for the fisheries sector which was suffering. 18% tariff is still high though? But better than before. Need to ensure our packaging and cold chain logistics are world-class to meet US standards. This is a big opportunity.
A
Aman W
Basmati rice farmers in Punjab and Haryana must be celebrating! We already have a 24% share, this will only grow. But the government must also help farmers with the costs of certification and meeting strict US FDA norms. That's where the real challenge lies.
K
Karthik V
While this is positive, let's be cautiously optimistic. These trade deals can change with political winds in the US. We need to diversify our export markets and not become overly dependent on any single country, no matter how lucrative.
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Nisha Z
The focus should be on value addition. Look at the numbers for edible fruits/nuts and vegetables – we are selling raw commodities for pennies compared to the prepared foods category. We need food processing industries near farms to get the real value.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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