India has drawn a clear red line around its agriculture and dairy sectors under the interim trade framework agreed with the United States, keeping staple food items and sensitive farm products completely out of tariff concessions while securing significant market access gains for Indian exports in non-farm sectors.
According to the joint statement released by New Delhi and Washington, India’s agriculture market has been “ring-fenced”, with no duty concessions granted on key farm and dairy products that support rural livelihoods and food security. The agreement, however, sharply cuts US reciprocal tariffs on Indian goods from 50 per cent to 18 per cent, offering a major boost to exports.
Union Commerce and Industry Minister Piyush Goyal said the framework reflects India’s commitment to safeguarding farmers’ interests while expanding trade opportunities.
“The agreement completely protects sensitive agricultural and dairy products, including maize, wheat, rice, soya, poultry, milk, cheese, ethanol, tobacco, vegetables and meat,” Goyal said in a social media post.
Agriculture Shielded, Trade Gains Elsewhere
While the deal opens doors for Indian manufacturers and exporters across sectors such as textiles, footwear, pharmaceuticals, aircraft parts, chemicals, and engineering goods, it makes no compromises on the economic backbone of India’s rural economy.
Officials say the approach balances trade liberalisation with domestic stability, ensuring that price-sensitive commodities and smallholder farmers are insulated from global market volatility.
Staples and Cereals: No Import Concessions
India has refused tariff cuts or quota relaxations on staple grains and cereal products, keeping the following items fully protected:
-
Wheat
-
Rice
-
Maize
-
Barley
-
Jowar (sorghum)
-
Bajra (pearl millet)
-
Ragi
-
Amaranth
-
Buckwheat
-
Oats
-
Kodo millet
-
Barnyard millet
-
Foxtail millet (kangni)
-
Unpolished grains
-
Maida (refined flour)
-
Flour made from wheat, rice, maize, and millets
These commodities form the core of India’s food security system and public procurement architecture.
Dairy Sector Fully Ring-Fenced
The dairy sector, which supports millions of small and marginal farmers, remains entirely protected under the trade framework. No import concessions have been granted on:
-
Milk (liquid, powder, casein)
-
Cheese (including mozzarella, blue-veined, grated and powdered variants)
-
Cream
-
Butter oil
-
Butter and ghee
-
Yoghurt
-
Buttermilk
-
Whey products
Officials say opening the dairy market would have exposed domestic producers to heavily subsidised imports, risking price collapse and livelihood losses.
Vegetables and Pulses Also Shielded
India has also blocked tariff concessions on several vegetables and pulses commonly grown by smallholders, including:
-
Frozen vegetables
-
Potatoes
-
Peas
-
Beans
-
Mixed frozen vegetables
-
Temporarily preserved vegetables
-
Cucumbers and gherkins
-
Mushrooms (Agaricus varieties)
-
Other preserved or processed vegetables
The move aims to prevent import surges that could destabilise local markets and farm incomes.
What India Opens Up To
While sensitive food items are protected, India has agreed to allow limited access to selected US industrial and agricultural products, including:
-
Dried distillers’ grains
-
Red sorghum for animal feed
-
Tree nuts
-
Fresh and processed fruits
-
Soybean oil
-
Wine and spirits
In return, Indian exporters gain expanded access to the US market in sectors such as apparel, leather, footwear, plastics, rubber products, organic chemicals, home décor, artisanal goods, select machinery, and pharmaceuticals.
Political Pushback Continues
The interim deal has drawn criticism from opposition parties, which have staged protests and walkouts in Parliament demanding a detailed debate, particularly on the long-term impact of trade liberalisation on agriculture.
The government, however, has maintained that the framework ensures zero compromise on farmers’ interests while unlocking growth opportunities for industry and exports.
As negotiations continue toward a comprehensive trade agreement, the interim deal signals India’s broader strategy: open markets where competitive, protect livelihoods where essential.
