Gujarat and Maharashtra could gain from US tariff rollback, India’s agri exports have been turning to industrialised states

Tariff rollback to benefit Gujarat and Maharashtra

The rollback of US tariffs on spices, fruits, coffee and tea is poised to benefit India’s western and southern industrialised states, with Gujarat and Maharashtra set to gain the most.

A Moneycontrol analysis shows that Gujarat accounted for 24 percent of India’s spice exports in FY25—up sharply from 15 percent in FY18—placing it at the centre of the commodity lines now seeing relief in the American market.

Data from the Indian Spices Board underscores why Gujarat is well positioned. The state ranks first in cumin and fennel production, second in coriander seeds, and features among the top 10 states for ginger and chilli. Maharashtra, meanwhile, is India’s largest turmeric producer—contributing nearly one-fourth of total output—and also ranks ahead of Gujarat in ginger production, giving it a sizeable footprint in high-value spice categories.

The tariff rollback, announced by US President Donald Trump on November 14, follows a phase of elevated duties imposed on Indian agricultural goods since August. India exported $23.5 million worth of turmeric and $45 million worth of cumin seeds to the US in 2024, with both commodities making up more than 40 percent of total American imports in their respective segments. The easing of these restrictions is expected to unlock an estimated $511 million worth of export opportunities across agriculture-linked products.

Industrialised and agrarian

India’s agri-export map has increasingly tilted toward its more industrialised states. Gujarat, Maharashtra, Andhra Pradesh and Karnataka together contributed nearly half of the country’s agricultural exports in FY25. Gujarat topped the table at $5.7 billion, followed closely by Maharashtra at $5.4 billion, Andhra Pradesh at $3.9 billion and Karnataka at $2.2 billion. The four states accounted for more than $17 billion of India’s total $36.9 billion agricultural exports.

Their dominance is shaped by the breadth of their commodity baskets. Gujarat, despite producing less than 2 percent of India’s rice, commands a 14 percent share of the country’s rice exports—worth $1.5 billion—thanks to stronger processing and trading networks. Maharashtra leads the fruits and vegetables category and has the highest share in cereal-preparation exports. Andhra Pradesh remains a major hub for marine products, spices and rice, while Karnataka dominates the coffee segment with over $800 million in shipments.

Other states—Haryana, Tamil Nadu, Kerala and West Bengal—retain specialised strengths ranging from dairy to tea to processed foods, but their scale is significantly lower compared with the Gujarat-Maharashtra-Andhra-Karnataka bloc.

Recent trends also show increasing regional concentration. Gujarat’s share in India’s agriculture exports rose to 16.4 percent in FY24 from 13.9 percent before the pandemic, while Andhra Pradesh’s climbed two percentage points to 10.5 percent. In contrast, Punjab, Bihar and Uttar Pradesh saw their shares decline.