Agricultural Trade as a Win-Win for India and US

• Prime Minister Narendra Modi’s statement that India will never compromise its farmers, livestock rearers, and fisherfolk is a clear indication of the red lines his government has drawn in the stalled trade agreement talks with the US.

• Issues in opening India’s domestic market to US farm produce, including GM maize and soyabean, fuel ethanol, and dairy products, have been known.

• The imposition of a 50% duty on Indian imports, including a 25% levy for oil purchase from Russia, has narrowed the Modi government’s space for give-and-take.

• Trade in farm produce between the two countries is booming, with exports from India to the US and from the latter to the former set to touch record highs in 2025.

• Promoting agricultural trade would be politically challenging, but California’s tree nut growers can help the US President understand how business can be done in a non-adversarial manner.

• India has much scope to expand exports of seafood, basmati rice, spices, and essential oils to the US, and may need to import maize and soyabean for poultry and cattle at some point.