India sets 3 tariff tiers for agricultural goods for US trade deal: Report

India sets 3 tariff tiers for agricultural items ahead of US trade deal: Report

The government has categorised its farm commodities into three tiers based on their economic and political sensitivity, as its talks with the US on a bilateral trade agreement (BTA) continue, the Business Standard has reported.

Agriculture is a sensitive topic, with the US seeking greater access to the Indian market, the government was to tread carefully.

The categorisation reflects these concerns —  “non-negotiable”, “very sensitive” and “liberal”, the report cited a government official as saying.

Rice, wheat and other staples fall under the non-negotiable category, where no import tariff concessions will be entertained.

Items such as apples, which are closely tied to famer interests in some states, may face restricted import concessions and fall under the “very-sensitive” tier.

High-value imports such as almonds, pistachios, walnuts and blueberries, mostly consumed by the rich, would be categorised as “liberal”.

The government is ready to significantly reduce import duties on such items, the report said.

Moneycontrol couldn't verify the report independently.

Moneycontrol has reported that while the first tranche of the bilateral accord may be finalised only by September or October, India is aiming to firm up talks for a smaller version before Trump's country-specific reciprocal tariffs kick in early next month.

India and the US are discussing the contours of the trade pact as part of Mission 500, a broader initiative aiming to more than double bilateral trade to $500 billion by 2030.

The two countries held another round of talks on June 5 and 6 in New Delhi, which has reportedly been extended to June 10.

Commerce and industry minister Piyush Goyal was in Washington in May to give talks a push and met his American counterpart Howard Lutnick twice.