India and the United States announced an ‘interim’ trade deal on Saturday morning — slashing tariffs on key imports and expanding access for American goods. New Delhi will also remove non-tariff barriers for several sectors and eliminate taxes levied on certain food and agricultural products. But several segments — including cereal, dairy and GM crops — have been left completely out of the agreement.
“India will eliminate or reduce tariffs on all US industrial goods and a wide range of U.S. food and agricultural products, including dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products,” read an excerpt from the joint statement.
India will cut duties on many “speciality” items that don’t directly compete with domestic staple farmers but remain in high demand once the deal comes into effect. Imported tree nuts such as almonds and walnuts are likely to get cheaper while US fruits gain easier market entry. India has also agreed to reduce tariffs on US soy oil — a major win for American crushers that will also help New Delhi manage its massive edible oil deficit.
‘No concessions for sensitive sectors’: Piyush Goyal
“The interests of our farmers remain paramount in all trade negotiations…No concessions have been extended to sensitive agricultural sector produce in grains, fruits, vegetables, spices, oilseeds, dairy, poultry, and meat amongst many others while securing preferential access for Indian goods through the India-US Interim Agreement framework,” Union Minister Piyush Goyal wrote on X.
He also shared an infographic detailing some of the products that had been denied entry despite the interim trade deal. Goyal noted that many dried, frozen and preserved vegetables had been put firmly on the ‘blocked’ list. Provisionally preserved vegetables such as cucumbers, gherkins and mushrooms as well as assorted canned vegetables have also been denied entry. Efforts to protect Indian farmers have also prompted a curb on various beans and pulses as well as tubers such as sweet potatoes.
“The India–US Trade Deal safeguards Indian farmers by allowing no entry for fruits and fruit products. Dried fruits, preserved fruits and nuts, and dried peels of citrus fruits or melons remain excluded, with no concessions granted,” reiterated an update from the Ministry.
Cereal, dairy, GM crops remain off limits
Dairy found no mention, and cereals were mostly omitted (with one exception) from the 12-point agreement outlined on Saturday. Genetically modified crops were also a major sticking point during negotiations and left mostly out of the deal.
Dairy has been a historically sensitive sector for India — involving millions of small-scale farmers — and remains a non-negotiable red line for all its trade agreements. The world’s largest milk producer has laid heavy emphasis on strengthening local cooperatives over the years, rather than relying on imports and potentially crashing local prices. India also requires a certification that cattle have never been fed animal products — which other countries often face difficulty in meeting.