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India-US Trade Deal Reshapes Farm Sector

Yahoo Finance •
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India and United States have established an interim trade framework that will lower tariffs, reconfigure energy ties, and deepen economic cooperation while reshaping global supply chains. New Delhi resisted broad agricultural market opening but agreed to reduce barriers on select farm goods, sparking criticism from farmers and opposition parties concerned about domestic market impacts.

The deal allows duty-free imports of DDGS (distillers dried grains with solubles) from the US, potentially benefiting India's $30 billion poultry sector where feed costs consume 60-70% of expenses. However, domestic oilseed processors and soybean farmers face pressure as surplus supplies weaken demand for oilmeals, prompting farmers to shift from soybeans to corn and rice despite government efforts to boost oilseed cultivation.

Indian tea, coffee, spices, and fruits producers gain duty-free access to the US market, representing a significant victory for these exporters. While cotton imports will increase under a quota system and apple imports will face reduced duties, protections remain in place. The duty reduction on rice to 18% will support both premium basmati and non-basmati exporters, creating clear winners in the agricultural trade landscape.