Us retaliatory tarifs: India should adopt a dual policy after the US counter duty. Under this, selectively high fees on non-sensitive agricultural commodities imported from the US should also be made strategically concessions to meet the decrease in domestic supply. NITI Aayog has said this report.
The Commission has said in a report released under the report ‘promoting Indo-US Agricultural Trade under the new American trade system’ that India’s agricultural sector needs security measures to ensure price stability for both producers and consumers to deal with the state of extreme instability in international markets. It said that it is now necessary to adopt a dual policy. In short term, India should consider dialogue on non-sensitive imports and negotiating non-fee protective steps on weak areas such as poultry.Also Read: Trump Tarif passed from American Senate, opposition expressed strong opposition
According to the report, after Donald Trump’s re -element of US President in January 2025, a sudden declaration of retaliation on American exports and raising access to the market was shocked worldwide, especially America’s business partners. It said that India can give strategically concessions in where there is a difference in domestic supply. These include edible oil and almonds, walnuts etc.
India is the largest importer of edible oil in the world: India is the biggest importer of edible oil in the world and the US has a huge export surplus of soybean, which is GM (genes enhanced). In such a situation, India can give some concession in the import of soybean oil to the US to meet the demand in the country and reduce trade imbalance without damaging domestic production.
The report also suggested that India should interact more in the US market for high -performance exports such as shrimp, fish, spices, rice, tea, coffee, rubber. India earns about $ 5.75 billion annually to the United States through agriculture. Extending it through fee exemption should be part of business talks.Also Read: Tariff War, Canada will also impose 25 percent counter -duty against America
According to the report, along with strategic trade management, India should make a medium-term structural improvements to improve the global competitive capacity of its agricultural sector. It stated that these include improving productivity difference by adopting appropriate technologies, market reforms, private sector participation, improvement in logistic and development of competitive price chains.
Important changes and growth in Indo-US Agricultural Trade: There has been a significant change in Indo-US agricultural trade in the last 2 decades. This is a sign of bilateral economic relations being deepened. The structure of agricultural trade between India and the US shows that the two countries are bringing diversity in their exports. Traditional items such as frozen shrimp, basmati rice and spices are dominated and there is a significant increase in exports of processed grains and other price -added products.
India’s imports from the US are limited to high -value items like almonds, pistachios and walnuts. India has maintained surplus in agricultural trade with the US and has increased over time. However, the importance of agriculture in bilateral trade is decreasing. (Language)
Edited by: Ravindra Gupta
