India-US trade deal protects farmers, to boost basmati exports: Govt

Union Agriculture Minister Shivraj Singh Chouhan assured that farmers' interests, including major crops and dairy, are protected in the India-US trade deal, which will also boost exports of Indian products like basmati rice and spices to the US.

Union Agriculture Minister Shivraj Singh Chouhan on Saturday assured that the government has protected all the major crops and dairy products, prioritising the benefits of farmers in the interim framework for the US-India trade agreement. Shivraj Singh Chouhan also emphasised that the deal would also open US markets for Indian exports, saying, "Our basmati rice will rock the US."

"There's going to be a lot of benefit. It is in the favour of farmers and people of India. We have protected all the major crops and dairy products. On the other hand, farmers will get markets for export. Our Basmati rice will rock the US. Our spices will go there. This is in the best interest of farmers," the Agriculture Minister told reporters.

Framework for Interim Agreement

Shivraj Singh Chouhan's comments came as he was interacting with farmers in Sehore district of Madhya Pradesh. India and the US announced a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade. The joint statement said that the framework reaffirms the countries' commitment to the broader Bilateral Trade Agreement (BTA) negotiations, launched by President Donald Trump and Prime Minister Narendra Modi on February 13, 2025, which will include additional market access commitments and support more resilient supply chains.

India's Commitments on Tariffs

According to the statement, India will eliminate or reduce tariffs on all US industrial goods and a wide range of food and agricultural products, including dried distillers' grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.

Government Assures Protection for Farmers

Union Commerce Minister Piyush Goyal has also underscored the government's commitment to farmers, stating that dairy, fruits, vegetables, spices, and other grains have been protected in the India-US trade deal to safeguard domestic farmers' interests.

"Farmers Safe, Country Developed... In the India-US trade agreement, dairy, fruits, vegetables, spices, and other grains have been protected. This will safeguard the interests of domestic farmers, strengthen local agriculture through preferential access to such a large market, and mark another powerful step forward in the direction of a self-reliant India," he said.

Protected Product Categories

Piyush Goyal further shared the list of dairy, fruits, vegetables, and spices that the government has protected in the trade deal.

The vegetables which can't be imported include frozen vegetables like potatoes, peas, cucumbers and gherkins, beans, other legume vegetables (peeled or unpeeled), temporarily preserved vegetables, like cucumber and mushrooms (Agaricus species) and mixed canned vegetables.

The dairy products protected under the agreements include: milk (liquid, powdered, candied, etc.), cheese (mozzarella, grated/powdered, etc.), cream, butter oil, yoghurt, cheese and other products, buttermilk, whey products, butter, and ghee.

The government has also ensured the protection of grains, which include ragi, wheat, copra, amaranth, maize, millet, rice, barley, oats, sorghum, fine flour, and flour (wheat, corn, rice, millet, etc.)

The spices protected under the deals are: black pepper, Long, dried green chilli, cinnamon (bark, flowers, etc.), coriander, cumin, asafoetida, ginger, turmeric, celery, fenugreek, Cassia, Mustard, rye, husk, and other powdered spices.

Path Forward

Both sides said they would promptly implement the framework and work toward finalising the Interim Agreement, with a view to concluding a comprehensive and mutually beneficial Bilateral Trade Agreement in line with the agreed roadmap. (ANI)

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