High Tariffs on Farm Goods Breed Inefficiency: Study

Hike in US tariffs may impact India's shrimp and rice exports

- SANDIP DAS

HIGHER IMPORT TARIFFS breed inefficiencies and expose Indian agricultural products' exports to reciprocal tariffs by the United States, a study by ICRIER said on Thursday.

"If the US enforces tit-for-tat tariffs, Indian agriculture will face challenges at three levels — country-level, product-level competitiveness loss, and increased non-tariff barriers," a paper titled 'Trump's tariff threat: likely impact on India's agriculture trade,' by ICRIER has stated.

A blanket tariff hike would reduce the competitiveness of frozen shrimp and rice from India to the US.

If the United States implements a broad tariff revision on Indian agricultural exports, farm products such as frozen shrimp entering duty-free, while semi-milled and wholly-milled rice face 11.2% tariff.

"A blanket tariff hike would reduce the competitiveness of these exports, against competitors like Vietnam, Thailand, and Indonesia," the study has noted.