‘India protects its agri, dairy sectors’

New Delhi: India has completely protected the interests of its agriculture and dairy sector in the India-US trade agreement as agriculture and allied activities such as animal husbandry form the backbone of India’s rural economy, providing employment to over 700 million people. Unlike in developed economies, where agriculture is highly mechanised and corporatised, in India, it is a livelihood issue.

India’s agriculture sector is currently protected by moderate to high tariffs or import duties and regulations to shield domestic farmers from unfair competition. Opening up a sector means reducing import curbs and duties.

India maintains a tariff structure ranging from zero to 150 per cent to protect its agricultural sector.

The US also imposes higher tariffs on select agricultural goods - for instance, tobacco (350 per cent). Additionally, the US applies complex non-ad valorem (NAV) tariffs that make imports more expensive. The US agri exports to India were USD 1.6 billion in 2024. Key exports include -- Almonds (USD 868 million); Pistachios (USD 121 mn), Apples (USD 21 mn), Ethanol (USD 266 m).

India’s agricultural tariffs do not violate WTO commitments. The rules allow member countries to protect sensitive sectors, particularly those linked to food security and rural employment, which are crucial for India.