In a detailed statement on the agriculture chapter of the agreement, the government said this long transition period applies to products used by India’s food processing industry, which are sourced from multiple countries.
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“Phased elimination of tariffs over up to ten years has been adopted for certain intermediate products used by India’s food processing industry and sourced from multiple countries. These include albumins; certain oils such as coconut oil, castor oil and cotton seed oil; hoofmeal; lard; stearin; modified starches; peptones and their derivatives; and plants and parts of plants etc. This extended timeline provides adequate adjustment space for domestic stakeholders,” the Press Information Bureau said.
The statement said agricultural market access has been calibrated based on product sensitivity, following India’s approach in earlier trade agreements. The offer is structured across immediate duty elimination, phased elimination of up to 10 years, tariff reduction, margin of preference and tariff rate quotas.
The statement comes after Union Commerce Minister Piyush Goyal said that India has agreed to a “very calibrated opening” of markets under the bilateral trade framework with the US, protecting key interests and sensitivities. He said farmers have nothing to worry about. “I’ll tell farmers that all sensitive items in agriculture have been fully protected with a very carefully crafted exclusion list, where we have given no concessions,” he said.
Also Read: India-US trade deal protects all sensitive agriculture products, nothing to worry for farmers, says Piyush Goyal The Centre also said India currently runs a $1.3 billion trade surplus in agricultural trade with the United States. In 2024, India exported farm and food products worth $3.4 billion to the US, while imports stood at $2.1 billion. Under the deal, the US will apply zero additional duty on Indian agricultural exports worth $1.36 billion.
Products getting zero-duty access include spices; tea and coffee and their extracts; copra and coconut oil; vegetable wax; nuts such as areca, Brazil, cashew and chestnuts; fruits and vegetables including avocados, bananas, guavas, mangoes, kiwis, papayas, pineapples, shiitake and mushrooms; cereals such as barley and canary seeds; bakery products; cocoa and cocoa preparations; sesame and poppy seeds; and processed items like fruit pulp, juices and jams.
Within this, exports worth $1.035 billion have been assured zero reciprocal tariff treatment to avoid uncertainty. The government said this will bring stability and predictability for Indian farmers and exporters.
Highly sensitive sectors remain fully protected under an Exemption category. These include meat, poultry and dairy products; GM food products; soyameal; maize; cereals and millets such as jowar, bajra, ragi, kodo and amaranth; fruits including bananas, strawberries, cherries and citrus; pulses like green peas, kabuli chana and moong; oilseeds; animal feed products; groundnuts; honey; malt and its extracts; non-alcoholic beverages; flour and meals; starch; essential oils; ethanol for fuel; and tobacco.
For select sensitive items, tariff reduction has been applied instead of full elimination so that a measured level of duty protection continues. Examples include parts of plants, olives, pyrethrum and oil cakes. Alcoholic beverages have been placed under tariff reduction along with minimum import price-based formulations.
Some highly sensitive products have been liberalised only through Tariff Rate Quotas, where limited quantities can enter at reduced duties. These include in-shell almonds, walnuts, pistachios and lentils.
Immediate duty elimination has been offered only for select non-sensitive products that are already liberalised under other free trade agreements.