'Certain pulses' to attract reduced tariffs under India-US deal: US fact sheet

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• India-US trade deal to cut tariffs on some US food and agricultural products
• Indian farm exports to US will face zero duty, sensitive crops remain protected
• US tree nut, cotton, and soybean oil exports to India may rise under new pact.

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India is expected to reduce tariffs on a wide range of US food and agricultural products including certain pulses under the recently announced trade deal between the two sides, according to the fact sheet published by the White House.

India and the US on Saturday announced an Interim Agreement regarding reciprocal and mutually beneficial trade (Interim Agreement), which will include additional market access commitments and support more resilient supply chains between the two sides.

The Indian government statement earlier however did not include pulses.

“India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of U.S. food and agricultural products, including dried distillers’ grains (DDGs), red sorghum, tree nuts, fresh and processed fruit, certain pulses, soybean oil, wine and spirits, and additional products,” the White House said.

The country’s import bill for pulses rose 46 percent to $5.48 billion in the financial year 2024-25 from $3.75 billion in 2023-24, as per official data.

Of India’s total pulses bill last fiscal, the US accounted for $89.65 million.

The government had said that the agreement will help India and the US remain focused on working together to further deepen economic cooperation, reflecting shared commitment to sustainable growth for our people and businesses.

Manoj Mishra, Partner and Tax Controversy Management Leader, Grant Thornton Bharat, noted that major crops, food grains, fruits, and dairy products remain protected, and the market has not been opened to genetically modified crops.

“While India continues to export significantly more agricultural products to the US than it imports, US farm exports of tree nuts, cotton, and soybean oil to India could grow under the pact. Overall, the agreement supports a stable and balanced agri-trade relationship without putting pressure on Indian farmers,” Mishra said.

Union Commerce Minister Piyush Goyal, in a press conference on February 7 had said that Indian farmers would be protected under the agreement, while Indian agricultural products would be exported to the United States at zero duty.

“Agricultural products from Indian farmers will be exported to the United States at zero duty. At the same time, no tariff concessions have been granted for agricultural products from US farmers entering the Indian market,” he said.

“Products made by our farmers, including spices, tea, coffee, coconut, cashew, mango, banana, guava, pineapple, and processed items like jams and juices, will now face zero reciprocal tariff in the United States. Sensitive commodities like rice, wheat, sugar, millets, and pulses remain fully protected,” Goyal had said.