Indian Spice Exports To Benefit From US Tariff Exemption On Certain Agri Products
These products will be subjected to Most-Favoured Nation (MFN) tariffs of the source countries. These products include, coffee and tea, tropical fruits and fruit juices, cocoa and spices, bananas, oranges, and tomatoes, beef and certain fertilizers
Chennai: Indian spices exports got some relief from reciprocal tariffs as the US has exempted exports of $50 billion worth agricultural products that are not produced in the country from the tariffs.
“Many of the announced trade deals and ongoing negotiations involve countries that produce substantial volumes of agricultural products that are not grown or produced in sufficient quantities in the United States. The President has thus determined that certain agricultural products shall no longer be subject to the reciprocal tariffs,” the White House had said in a notification.
These products will be subjected to Most-Favoured Nation (MFN) tariffs of the source countries. These products include, coffee and tea, tropical fruits and fruit juices, cocoa and spices, bananas, oranges, and tomatoes, beef and certain fertilizers.
These products account for $50.6 billion imports by the US. According to GTRI, India supplies only $548 million worth of products mentioned in the list.
“India’s exports to the US are concentrated in a handful of high-value spices and niche products: pepper and capsicum preparations valued $181 million, ginger–turmeric–curry spices of $84 million, anise and cumin seed categories of $85 million, cardamom and nutmeg valued $15 million, tea worth $68 million, and modest quantities of coconuts, cocoa beans, cinnamon, cloves, and fruit products,” it said.
India has almost no presence in several of the largest exempted lines—tomatoes, citrus fruits, melons, bananas, most fresh fruits, and fruit juices.
However, it is not clear yet whether Indian exports will be exempt from 25 per cent reciprocal tariffs or full 50 per cent tariffs.
The shift in the US tariff policy could marginally strengthen India’s competitive position in spices and niche horticulture, but the broader gains will accrue mainly to major Latin American, African and ASEAN exporters.
