India has ring-fenced its sensitive agricultural and dairy sectors even as it agreed to wider market access for US farm products under the framework for an interim trade agreement announced jointly by New Delhi and Washington on Saturday.
According to the joint statement, India will eliminate or reduce tariffs on a range of US agricultural exports, including dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine and spirits.
However, officials in New Delhi told The Tribune that key staples and sensitive farm and dairy products have been fully protected from tariff concessions. These include maize, wheat, rice, soya, poultry, milk, cheese, certain vegetables and meat products, ensuring continued protection for domestic farmers and rural livelihoods.
A day earlier, Union Agriculture Minister Shivraj Singh Chouhan said India’s staple grains, fruits, major crops, millets and dairy products remain “completely secure” and face no threat whatsoever. He emphasised that the interests of small and large farmers alike have been fully protected and that the agreement would create fresh opportunities rather than risks for Indian agriculture.
Meanwhile, the agreement also commits India to addressing long-standing non-tariff barriers affecting US agricultural exports, with both sides agreeing to work towards resolving regulatory and market access issues in a time-bound manner.
At the same time, India and the US have agreed to establish clear rules of origin to ensure that trade benefits accrue primarily to producers in the two countries, while retaining the right to modify commitments if either side alters agreed tariff structures.
Officials said the calibrated approach reflects India’s effort to balance export-driven trade engagement with the need to safeguard food security, farmer incomes and rural employment.
The interim framework is part of broader negotiations towards a comprehensive India-US Bilateral Trade Agreement, which is expected to further address agricultural market access issues alongside industrial and services trade.
