India-US Agricultural Trade Negotiations

India, in its trade negotiations with the United States, has categorized its agricultural commodities into three categories based on economic and political sensitivity: non-negotiable, very sensitive, and liberal.

Non-Negotiable Items

• Includes staples like rice and wheat.
• No tariff concessions will be entertained for these items.

Very Sensitive Items

• Items like apples, crucial for farmer interests in states such as Himachal Pradesh and Uttarakhand.
• May face restricted concessions through methods like minimum import prices (MIP) or tariff-rate quotas.

Liberal Category

• High-value imports such as almonds, pistachios, walnuts, and blueberries.
• India is open to drastically reducing tariffs on these items.

Trade Deal Context

Both countries aim to sign a mutually beneficial Bilateral Trade Agreement (BTA) by fall, with an early tranche focusing on market access due to a reciprocal tariff scheduled to commence from July 9.

US Perspective

• US Commerce Secretary Howard Lutnick emphasizes the need for political will on both sides.
• US agricultural commodity associations have expressed concerns over India's high domestic subsidies and trade barriers.

Specific Commodity Concerns

• The International Dairy Foods Association sees potential for US dairy exports to India if restrictions are lifted.
• The US Wheat Associates points out high domestic support in India affecting US wheat producers.
• The Illinois Corn Growers Association highlights import prohibitions on genetically modified corn and ethanol.
• The American Soybean Association notes significant tariff and non-tariff barriers in India.
• The Almond Alliance seeks reduced duties for almonds to compete with Australia.
• The North American Blueberry Council and California Cherry Board advocate for tariff eliminations on their respective products.
• The California Table Grape Commission requests the removal of high tariffs on fresh grapes.