Consideration of duty-free import of US cotton and limited-quota agricultural products
08-Aug-2025 09:50 AM
Consideration of duty-free import of US cotton and limited-quota agricultural products
★ Ahead of the crucial India-US trade talks, the industry has suggested that the government allow duty-free imports of cotton from the US and accept certain agricultural products under limited quotas.
★ The objective is to support the manufacturing sector amid declining domestic cotton production. The US accounts for about 30% of India’s total apparel exports.
★ According to government sources, discussions have been held on setting quotas for American agricultural products, but these will not include genetically modified (GM) crops. In India, GM crops face resistance, and so far, only Bt cotton has been approved for cultivation.
★ GM crops include maize, soybean, and wheat — meaning their imports are unlikely.
★ These concessions are expected to be discussed during the trade negotiations in India on August 25, when the US delegation arrives.