Source: IE
Context:
India’s concessions on agriculture under the India–US interim trade framework are selective and calibrated, not a wholesale opening. The strategy reflects a balance between trade diplomacy and domestic political economy of farming.
India has opened non-sensitive segments of agriculture while ring-fencing staple crops and livelihood-critical sectors.
What India has agreed to open
India has committed to reducing or removing tariffs on a limited basket of US agricultural and food products, including:
- Animal feed inputs
- Distillers’ Dried Grains with Solubles (DDGS)
- Red sorghum
- Edible oils
- Soybean oil
- High-value / non-staple products
- Tree nuts (almonds, walnuts, pistachios)
- Fresh and processed fruits
- Wine and spirits
Why these were chosen
- These items:
- Are not central to India’s food security
- Have limited farmer footprint
- Support downstream sectors (poultry, dairy, food processing)
- Cheaper feed inputs can lower costs for livestock and aquaculture, aligning with protein-consumption goals.
What India has protected
India has explicitly kept out key sensitive agricultural sectors from tariff concessions:
- Food staples: rice, wheat, sugar
- Feed and oilseed crops: maize, whole soybean
- Dairy and poultry
- Fuel ethanol
- Meat and other politically sensitive farm products
Who gains and who faces pressure
Likely gainers
- Poultry and dairy industries (cheaper feed)
- Food processors and beverage industry
- Urban consumers (greater variety, price competition)
Potentially affected
- Domestic oilseed processors
- Certain feed manufacturers
- Farmers in niche crops facing import competition
What this tells us about India’s trade strategy
- India is not anti-trade, but risk-averse on agriculture
- Liberalisation is:
- Product-specific
- Input-oriented
- Politically sequenced
- Reflects a shift from:
- “All-or-nothing” stance
→ to managed openness
- “All-or-nothing” stance
