SBI Report: India’s agricultural exports to US gain with duty-free access

An SBI report has highlighted that India’s agricultural exports to the United States are poised for a major boost, with nearly 75 per cent of export items now enjoying zero tariff access.

The report underscored the fact that India currently enjoys a trade surplus of USD 1.3 billion in agricultural trade with the US and noted that agricultural exports worth USD 1.36 billion will now receive zero additional US duty access, offering significant support to Indian farmers and exporters in scaling up shipments.

This reduction in duties is expected to enhance the competitiveness of Indian products, widen market access and enable exporters to increase volumes, thereby strengthening India’s agricultural trade surplus with the US.

The report stated, “agricultural products valued at USD 1.035 bn have assured zero reciprocal tariff, which will significantly help Indian farmers and exporters to scale up”.

Several key agricultural commodities are expected to benefit from the new tariff structure, including rice, spices, oilseeds, tea and coffee. The US import share of Indian rice stands at nearly 24 per cent, which, according to the report, will provide strong support to Indian farmers.

Tea, coffee and spices currently account for around 3 per cent of US imports, and the revised tariff regime is likely to further strengthen India’s plantation economy.

What’s the update on India’s fishery sector?

India’s fishery sector, which had earlier been impacted by higher US tariffs, is also expected to see renewed growth. The US imports around 10 per cent of its fishery products from India, and the lower tariff of 18 per cent is projected to support the sector and improve export prospects.

According to data cited in the report, under the category of fish and aquatic invertebrates, US imports from the world stood at USD 18,848 million (USD 18.84 billion), of which USD 1,817 million (USD 1.8 billion) came from India, giving the country a 9.6 per cent share.

In the rice segment, US imports from the world were valued at USD 1,378 million (USD 1.3 billion), while imports from India amounted to USD 341 million, reflecting a 24.7 per cent share.

For coffee, tea and spices, US imports from the world stood at USD 14,026 million (USD 14 billion), with India contributing USD 396 million, translating into a 2.8 per cent share.

In edible fruits and nuts, total US imports were USD 21,522 million (USD 21 billion), with only USD 39 million sourced from India.

In edible vegetables and certain roots, US imports stood at USD 12,402 million (USD 12 billion), of which USD 109 million came from India.

In prepared vegetables, fruits and nuts, US imports from the world were valued at USD 13,774 million (USD 13 billion), and USD 192 million of this was sourced from India.

Overall, total US imports in the selected categories stood at USD 81,950 million (USD 81 billion), while imports from India were USD 2,894 million (USD 2.8 billion), giving India a 3.5 per cent share.

(With inputs from ANI)