From non-negotiable to liberal: India sets agri tariff tiers for US

Concessions unlikely on grains; approach lenient towards almonds, blueberries

- ASIT RANJAN MISHRA

In its delicate negotiations on agricultural items under the proposed trade deal with the United States (US), India has drawn clear red lines, categorising its farm commodities into three distinct buckets — non-negotiable, very sensitive, and liberal — based on their economic and political sensitivity, said a government official.

Staples such as rice and wheat fall under the non-negotiable category, where no tariff concessions will be entertained. Very sensitive items — such as apples, which carry political weight and are closely tied to farmer interests in states like Himachal Pradesh and Uttarakhand — may face restricted concessions, possibly through minimum import prices (MIP) or tariff-rate quotas. However, for high-value, niche imports largely consumed by India's affluent — including almonds, pistachios, walnuts, and blueberries — New Delhi is taking a liberal approach, signalling a readiness to drastically reduce tariffs as part of a broader give-and-take on trade.

Though both countries have committed to signing a mutually beneficial Bilateral Trade Agreement (BTA) by this fall, India is pushing for an early tranche in order to avoid a 26 per cent reciprocal tariff scheduled to come into force from July 9. "The focus under the early tranche deal is on market access, as the US is prioritising reducing its trade deficit with key trade partners. Other parts of the trade deal will be taken up later," said the government official.