US Tariff Cuts: India Agri Exports to Benefit

New Delhi, Nov 17 (PTI) India is expected to gain from the US decision to roll back reciprocal tariffs on certain agricultural products such as tea, coffee and spices, the commerce ministry said on Monday.

A White House Executive Order issued on November 12 excludes coffee, tea, tropical fruits, fruit juices, cocoa, spices, bananas, oranges, tomatoes, beef and certain fertilisers from the April 2 reciprocal tariff regime. The exemptions took effect on November 13.

The Commerce Ministry said that while this applies to all trading partners, it creates a level playing field for Indian exporters.

India exports these goods worth over USD 1 billion annually. These products included fruits and nuts, processed foods, spices, tea and coffee, essential oils, and vegetable and edible roots.


"Now our exports will have a level playing field," Joint Secretary in the Department of Commerce Darpan Jain told reporters here.

However, think tank GTRI has said that India will have a small gain from the US move.

"India has almost no presence in several of the largest exempted lines - tomatoes, citrus fruits, melons, bananas, most fresh fruits, and fruit juices," GTRI Founder Ajay Srivastava said.

He said that the shift in US tariff policy could marginally strengthen India's competitive position in spices and niche horticulture, but the broader gains will accrue mainly to major Latin American, African, and ASEAN farm exporters unless India expands scale, builds cold-chain capacity, and diversifies its agricultural export basket.