From Fields to US Markets: How Indian farmers stand to benefit from the US agriculture deal

The agricultural sector in India is acquiring valuable trade opportunities with the United States by maintaining a USD 1.3 billion trade surplus with the US for agricultural goods.

India exported farm products worth USD 3.4 billion to other countries while it imported goods worth USD 2.1 billion, representing its great export position.

The country has also established zero-duty access to a US agricultural import market with an estimated value of USD 46 billion. The market includes products that range from spices and tea to coffee and fruits, together with processed foods and essential oils.

Add Zee Business as a Preferred Source

Preferential tariff rates, which provide an 18 per cent discount for the US market, are approximately worth USD 160 billion, thus creating new export opportunities.

The marine sector will receive an 18 per cent tariff advantage, which applies to a US market that has an estimated worth of USD 25 billion.

Three pillars supporting farmer growth

The agricultural trade strategy, which India developed for its relationship with the US, creates three main pillars. The agricultural trade strategy aims to increase key farm product exports while it supports forestry-based products and future crop development, boosting farmer earnings.

1. Big export gains for key farm products

• Several Indian agricultural products currently exhibit strong market demand within the United States.
• Marine products exported by India include shrimp, as its second biggest export category, while these products deliver essential financial assistance to communities that live along the coast.
• Basmati and speciality rice varieties also enjoy high demand because of their premium quality and geographical indication (GI) status.
• As International markets show interest in spices, tea, coffee, and sesame seeds, along with mangoes and bananas.
• The products enable small farmers and farmer producer organisations (FPOs) to achieve higher profits.
• Export demand creates an incentive for farmers to grow different crops while they work on developing their high-value horticulture operations.

2. Boost to forestry and allied rural livelihoods

• The second pillar focuses on forestry-linked products that support rural and tribal livelihoods.
• The group consists of bamboo materials, vegetable waxes, plant saps, beeswax, nuts, and bamboo shoots, as many of these items fall under zero-tariff access, helping farmers earn income beyond traditional crop cultivation.
• The National Bamboo Mission, Van Dhan Yojana, and National Beekeeping and Honey Mission provide government support for these activities.
• The products generate extra revenue for farmers while they practice sustainable, environmentally friendly farming methods.

3. Focus on future crops and small farmers

• The third pillar supports futuristic and livelihood-based crops that benefit small farmers and women-led enterprises.
• The market expects higher export demand for tropical fruits and processed fruit items, coconut products, nuts and oilseeds.
• The Mission for Integrated Development of Horticulture and PM Formalisation of Micro Food Processing Enterprises, and the National Mission on Edible Oils, help farmers grow and process these crops.
• Tribal farmers also benefit from exports of special vegetables, roots, and forest-based produce.
• The Indian agricultural trade with the United States seeks to raise farmer incomes and promote crop diversity while generating new employment opportunities in rural areas.
• The farmers receive enhanced export opportunities through the combination of increasing export volumes with existing government financial assistance programs, which work together to improve their international market competitiveness and boost agricultural development in India.