Surat, Feb 8
The recently announced trade deal between India and the United States has created a positive sentiment in the agriculture sector.
Reacting to the development, stakeholders in South Gujarat said, "It is expected to bring substantial benefits to farmers and traders while protecting domestic interests".
Babubhai Shaikh, Director and Trader at the Agricultural Produce Market Committee (APMC) in Surat, said the agreement reflects Prime Minister Narendra Modi's focus on the country's overall development.
He described the decision to keep agriculture and dairy farming outside the ambit of the deal as "highly commendable", saying it safeguards the interests of Indian farmers.
Shaikh said the agreement would significantly benefit farmers in Gujarat, particularly those in South Gujarat.
"Fruits such as mango, sapota, papaya and banana have been given zero per cent tariff. This will provide major relief and open up better opportunities for farmers in this region," he said, adding that the move would improve access to the US market for local produce.
According to him, the benefits are not limited to farmers alone. He said traders have also welcomed the deal, as it allows direct trade with the United States under favourable conditions.
Shaikh pointed out that strict norms have been put in place on imports to protect domestic producers. "Items such as citrus fruits, potatoes, peas, beans and frozen vegetables will not be allowed to enter India. This ensures our farmers are protected, while exports are permitted at zero per cent tariff," he said.
He added that this approach would be highly beneficial for the country's development and aligns with the Prime Minister's vision of doubling farmers' income.
Referring to vegetable exports, Shaikh said, "Products such as Indian beans, brinjal and other vegetables are exported from India to the US and that exports are expected to increase following the removal of tariffs.
Shaikh recalled that after higher tariffs were imposed earlier, business had declined sharply. "Our trade fell by nearly 70 per cent, and imports of fruits and vegetables dropped significantly. With this new announcement, both traders and farmers will benefit, and it will encourage farmers to move ahead in agriculture," he said.
Experts have also said that India stands to gain from the revised tariff structure under the deal.
They noted that the US had earlier imposed a 25 per cent tariff on Indian goods, later increased it by another 25 per cent, and has now reduced it directly from 50 per cent to 18 per cent, which is seen as favourable for India.
South Gujarat Chamber of Commerce and Trade President Nikhil Madrasi said India's strategy of finding alternative global markets after tariff hikes by the US had proved successful.
"We did not remain dependent on a single country. Now, tariffs have been reduced, and the new markets we developed will also continue to benefit us," he said.
Madrasi said the agreement strengthens India's resolve to avoid dependence on any one nation.
He noted that India's exports to the US are valued at $86.5 billion, while imports stand at $45.3 billion, and major changes are unlikely.
"We made it clear that we would not bend, but we would continue dialogue. I believe this deal is the outcome of that dialogue," he said.
- IANS
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