India–US Trade Deal Historic, Farmers' Interests Fully Protected, Says Agri Minister

New Delhi, Feb 9 (KNN) Union Minister of Agriculture and Farmers' Welfare and Rural Development, Shivraj Singh Chouhan has described the recently concluded India–US trade deal as 'historic and unprecedented,' stating that the agreement would impart fresh momentum to the Indian economy while fully safeguarding the interests of farmers.

Addressing a press conference at his residence in Bhopal, the Minister said the agreement is not merely a commercial arrangement but also reflects India's growing global stature. He stated that the deal represents a combination of diplomacy, development and dignity, with national interest placed at the forefront.

Chouhan said the agreement sends a clear message globally that India takes decisions with confidence and prioritises national interest without compromise. He added that India is advancing internationally through a balanced and constructive approach, strengthening its position as a reliable global partner.

Zero Tariffs for Several Indian Agri Products in US

The Minister highlighted that several Indian agricultural products will now gain access to the US market at zero tariff, while similar concessions have not been extended to American agricultural goods in India.

He stated that the USA has reduced tariffs, earlier as high as 50 percent, to zero on a range of Indian agricultural products, including spices, tea, coffee, coconut and coconut oil, betel nut, cashew, vegetable wax, avocado, banana, guava, mango, kiwi, papaya, pineapple, mushrooms and certain grains.

India's agricultural exports to the US stood at USD 4.45 billion in 2024–25, he said, adding that spice exports recorded an 88 percent increase during the year. The trade agreement is expected to further accelerate exports, particularly in the spices segment where India already exports to nearly 200 destinations globally.

Chouhan emphasised that India's domestic agricultural market remains fully protected and that foreign agricultural products entering India will continue to face applicable tariffs.

Sensitive Items Kept Outside the Agreement

The Union Minister stated that no tariff concessions have been granted on sensitive agricultural products that could affect domestic farmers. He clarified that items such as soybean, corn, rice, wheat, sugar, coarse grains, poultry, dairy products, oilseeds, ethanol and tobacco have been kept outside the scope of concessions.

He further noted that major fruits and vegetables, including banana, strawberry, cherry, citrus fruits, green peas, chickpeas and mung beans, have also been excluded from tariff relaxations.

In the dairy sector, products such as liquid milk, milk powder, cream, yogurt, buttermilk, butter, ghee, paneer and cheese will not receive market access concessions. Similarly, several spices including black pepper, cloves, dry green chilies, cinnamon, coriander, cumin, asafoetida, ginger, turmeric, carom seeds, fenugreek and mustard remain protected.

He stated that no entry has been allowed for American hulled grains, flour, wheat, corn, rice, millet, potatoes, onions, pulses, frozen vegetables, oranges, grapes, lemons, strawberries and mixed canned vegetables.

Opportunities for Farmers and Allied Sectors

The Minister said the agreement opens new opportunities for farmers, women entrepreneurs and youth. He noted that tariff reductions on Indian textiles to around 18 percent compared to competing nations would provide a boost to exports, indirectly benefiting cotton farmers.

He added that sectors such as gems and jewellery, auto components, engineering goods and MSMEs are also expected to gain from improved market access.

Shri Chouhan said self-help groups, particularly women-led enterprises involved in product manufacturing, would benefit from expanded global recognition and market opportunities.

Progress on Free Trade Agreements

Referring to India's broader trade engagement strategy, the Minister said that nine Free Trade Agreements (FTAs) have been completed under the leadership of Prime Minister Shri Narendra Modi. India has signed FTAs with 27 countries, including the United Arab Emirates, Oman, New Zealand and the United Kingdom, besides the United States, while negotiations with other countries are ongoing.

He said these agreements will benefit farmers, exporters, manufacturers and workers, contributing to the goal of building an Atmanirbhar and Viksit Bharat by 2047.

(KNN Bureau)