NITI Aayog Recommends Dual-Track Strategy on US Agri Imports Amid Tariff Tensions
Think tank suggests selective tariff cuts on non-sensitive items and strategic concessions on supply-gap goods, while pushing for greater US market access for key Indian agri-exports.
Amid the shadow of reciprocal tariffs imposed by the US, government think-tank Niti Aayog on Tuesday said that India should adopt a dual-track approach and selectively reduce high tariffs on non-sensitive agricultural commodities imports from Washington, while also strategically offering concessions where domestic supply gaps exist.
As per the Aayog in its working paper, titled 'Promoting India-US Agricultural Trade Under the New US Trade Regime', India's agricultural sector needs safeguards, to ensure price stability for both producers and consumers, against excessive volatility in international markets. “A dual-track approach is essential now. In the short term, India should consider selectively reducing high tariffs on non-sensitive imports and negotiate non-tariff safeguards on vulnerable segments such as poultry,” the paper said.
The paper also noted that the sudden announcement of reciprocal tariffs and enhanced market access for US exports following the re-election of Donald Trump as President of the United States in January 2025 have sent shock waves across the world especially among the trading partners of the US. “India can also strategically offer concessions where domestic supply gaps exist, such as in edible oils and nuts,” it suggested.
Noting that India is the largest importer of edible oil in the world and the US has huge export surplus of soybean which is GM, the paper said India can offer some concession to the US in import of soybean oil to meet demands in that country and reduce trade imbalance, without harming domestic production.
The paper, however, suggested that India should negotiate more access to the US market for high-performing exports like shrimp, fish, spices, rice, tea, coffee and rubber. India earns approximately $5.75 billion annually from agri-exports to the US. Expanding this through duty waivers or TRQs should be part of trade talks.
Alongside strategic trade management, it said India must undertake medium-term structural reforms to improve the global competitiveness of its farm sector. “This includes bridging the productivity gap by embracing appropriate technologies, market reforms, private sector participation, improvement in logistics and development of competitive value chains,” it said.
