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India Secures Zero-Tariff US Market for Spices, Fruits; No Concessions Given

Union Agriculture Minister Shivraj Singh Chouhan announced a trade agreement where many Indian agricultural products like spices, tea, and mangoes will enter the US with zero tariffs. In return, India has not granted any tariff concessions on sensitive American products, including major grains, dairy, and poultry. The deal explicitly protects Indian farmers by keeping items like wheat, rice, sugar, and pulses outside the agreement. This is expected to significantly accelerate India's agricultural exports, which already saw an 88% increase in spice exports last year.

Key Points: India-US Trade Deal: Zero Tariffs for Indian Agri Exports

  • Zero US tariffs on Indian spices & fruits
  • No Indian concessions on grains & dairy
  • Sensitive items like wheat, rice protected
  • Agri exports to get major boost
3 min read

Zero tariffs on Indian agri products in US; no concession for American items: Shivraj Singh Chouhan

India gains zero-tariff access to US for spices, tea, coffee & fruits. Deal protects Indian farmers, dairy, and grains with no reciprocal concessions.

Zero tariffs on Indian agri products in US; no concession for American items: Shivraj Singh Chouhan
"No compromise has been made on the interests of Indian farmers. - Shivraj Singh Chouhan"

New Delhi, Feb 8

Union Agriculture Minister Shivraj Singh Chouhan said on Sunday that many agricultural products of Indian farmers will now be exported to the United States of America with zero tariffs and American farmers' agricultural products will not receive this concession in the Indian market.

Stressing that India's interests in agriculture and dairy are fully protected, the Union Minister added that the US has made significant reductions in tariffs on many products in the agricultural sector.

"These include spices, tea, coffee, coconut, coconut oil, betel nut, cashew, vegetable wax, avocado, banana, guava, mango, kiwi, papaya, pineapple, mushrooms, and some grains as well," Union Minister Chouhan said.

"In 2024-25, India's agricultural exports reached $4.45 billion. There has been an 88 per cent increase in spice exports. Now, following this trade deal, "our spices will also gain a new and large market in the US," the Union Minister noted, adding that this agreement will further accelerate the exports of spices and other agricultural products.

"No compromise has been made on the interests of Indian farmers, and no product that could harm farmers has been included in the agreement. All sensitive items have been kept outside the agreement," he reiterated.

No tariff concessions of any kind have been given on products such as soybean, corn, rice, wheat, sugar, coarse grains, poultry, dairy, banana, strawberry, cherry, citrus fruits, green peas, chickpeas, mung beans, oilseeds, ethanol, and tobacco.

"The greatest worry was that our major grains must remain secure, and I can proudly say that all of them have been kept completely secure. No doors have been opened for the US for major grains, major fruits, and dairy products," the Union Minister said.

"Many American agricultural products will not be able to enter the Indian market. Hulled grains, flour, wheat, corn, rice, millet, potato, onion, peas, beans, cucumber, mushrooms, pulses, frozen vegetables, oranges, grapes, lemons, strawberries, and mixed canned vegetables will not come to India," he added.

Regarding dairy products as well, the Union Minister said that in dairy products -- liquid milk, powder, cream, yogurt, buttermilk, butter, ghee, butter oil, paneer and cheese -- none of these will get entry into India.

Apart from agriculture and dairy, India will not import black pepper, cloves, dry green chilies, cinnamon, coriander, cumin, asafoetida, ginger, turmeric, carom seeds, fenugreek, cassia, mustard, mustard seeds, husks, and other powdered spices from the US.

"The meaning is clear: our spices and our farmers are completely secure," Union Minister Chouhan added.

The Union Agriculture Minister said that this agreement will provide new opportunities for Indian farmers, women, and especially youth, to move forward.

- IANS

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Reader Comments

A
Arjun K
A very balanced agreement it seems. We get access for our products, but our market remains protected for items where our farmers could be vulnerable. The key now is ensuring the benefits actually reach the small and marginal farmers, not just the big agri-businesses.
R
Rohit P
Protecting dairy is crucial. Our dairy farmers, especially the women in cooperatives, would have faced impossible competition from heavily subsidized American milk products. Good to see ghee, paneer, and butter oil on the protected list. 🇮🇳
S
Sarah B
As someone who follows trade closely, this looks like a smart, asymmetric deal in India's favour on paper. The real test will be in implementation and whether US non-tariff barriers (like strict phytosanitary norms) will still hinder our exports. Hope the government has a plan for that.
K
Karthik V
Mangoes and spices to America with no tariffs! This is what we call a sweet deal. Our Alphonso and Langra mangoes will finally get the respect (and price) they deserve abroad. Time for our farmers to focus on quality and branding to truly capitalize.
M
Meera T
While the protection is welcome, I hope this doesn't make our farming sector complacent. We still need massive investment in supply chains, cold storage, and food processing to become a global agricultural powerhouse. This deal is an opportunity, not the finish line.

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