The duty-free or reduced tariff import of US farm products was announced two days after Agriculture Minister Shivraj Singh Chouhan assured Parliament on February 5 that India’s staple grains, fruits, major crops, millets, and dairy products are secure and face no threats.
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India will eliminate or reduce tariffs on all US industrial goods and a wide range of US 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, according to the joint statement issued by the US and India. However, there is no clarity on whether the US decision to reduce its import tariff to 18 per cent will be applicable to Indian shrimp and Basmati rice, among other farm goods.
The statement regarding the duty-free or at reduced tariff import of US farm products came two days after Agriculture Minister Shivraj Singh Chouhan asserted in Parliament on February 5 that India’s staple grains, fruits, major crops, millets and dairy products remain completely secure and face no threat whatsoever.
businessline was the first to report on March 5 last year about a likely concession to the US on allowing soya oil at zero duty among other farm products.
India has already been importing soyabean oil from the US, along with Brazil, Argentina and Russia in which the effective import duty is 27.5 per cent on crude varieties and 35.75 per cent on refined oil. However, the share of imports from the US in the entire imported soya oil is very negligible. The US is not a big exporter of soya oil as it has huge domestic consumption, both for food processing and biodiesel programme, limiting the surplus. But it exports a lot of soyabean, which are genetically modified and not allowed in India.
According to the joint statement, the US “will apply a reciprocal tariff rate of 18 per cent” on originating goods of India, including textile and apparel, leather and footwear, plastic and rubber, organic chemicals, home décor, artisanal products, and certain machinery, “subject to the successful conclusion of the Interim Agreement”. There is no mention about “agricultural products” in the list of items in which US would reduce duty.
Published on February 7, 2026