The US has exempted products such as tea, coffee, spices, tropical fruits and fertilisers from its reciprocal tariff regime, effective 13 November.
However, GTRI cautioned that gains may be limited as India has little presence in several major exempted categories, with stronger benefits likely for Latin American, African and ASEAN exporters.
India to Gain from US Tariff Rollback on Select Farm Goods: Commerce Ministry
India, which exports over USD 1 billion worth of these goods annually, is expected to benefit, according to the Commerce Ministry.
Summary
India's commerce ministry on Monday said that India is expected to gain from the US decision to roll back reciprocal tariffs on certain agricultural products such as tea, coffee and spices,
A White House Executive Order issued on November 12 excludes coffee, tea, bananas, oranges, tropical fruits, fruit juices, cocoa, spices, tomatoes, beef and some fertilisers from the April 2 reciprocal tariff regime.
The exemptions took effect on November 13.
The Commerce Ministry said that even though the exemptions apply to all trading partners, it creates a level playing field for Indian exporters.
India exports products inclusive of fruits and nuts, processed foods, spices, tea and coffee, essential oils, and vegetable and edible roots worth over USD 1 billion annually. T.
"Now our exports will have a level playing field," Darpan Jain, Joint Secretary in the Department of Commerce said.
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Contrarily, think tank GTRI has said that India will have a minor gain from the US move.
"India has almost no presence in several of the largest exempted lines - tomatoes, citrus fruits, melons, bananas, most fresh fruits, and fruit juices," GTRI Founder Ajay Srivastava said.
He said that the shift in US tariff policy could marginally strengthen India's competitive position in spices and niche horticulture, but the broader gains will stick to Latin American, African, and ASEAN farm exporters.
The alternative is that India expands scale, builds cold-chain capacity, and diversifies its agricultural export basket.
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