Most agricultural products are protected in the trade agreement with the United States

19-Feb-2026 07:57 PM

New Delhi. Although the interim bilateral trade agreement between India and the United States provides customs duty exemptions on the import of some American agricultural products into India and hints at the removal of some other tariff restrictions, many important agricultural products remain unaffected. These include rice, wheat, maize, dairy, and poultry products.

Importantly, the United States had been putting intense pressure on India to open its market to GM maize and soybeans, but India refused to comply, forcing it to settle for some concessions on the export of soybean oil and DDGS. Similarly, the United States did not receive any additional concessions on the export of dairy products, nor did India agree to grant any concessions on poultry products.

Regarding rice and wheat, India is not only completely self-sufficient in their production but also remains the leading exporter of rice. After nearly four years, the government has now opened wheat exports under a quota system.

However, the exemption granted on the import of soybean oil and DDGS has become a matter of controversy as it is likely to impact the prices of soybean, soybean meal, and maize. Its psychological impact is being felt from the very beginning. Another important point is that the US has only slightly reduced import duties on Indian products – not completely eliminated them – while allowing duty-free imports of some of its products into India.

Imports of dry fruits (or tree nuts) from the US have also been made cheaper. India has not received any unilateral or special exemption from the US; only the import duties have been kept slightly lower than those of other rival countries.