NEW DELHI, 2 July 2025: India’s ministries of agriculture, animal husbandry, and fisheries have cautioned trade negotiators against offering import duty cuts to the United States on key farm and livestock products under the interim trade pact currently being negotiated in Washington, according to official sources.
US negotiators have pressed for tariff relief on maize, soybean, skimmed milk powder, and poultry products. India, however, is reluctant to ease import duties on these sensitive products, citing risks to small and marginal farmers. Maize imports currently face a 61% tariff, while skimmed milk powder attracts a 68% duty.
“There is rising demand for maize for animal feed, ethanol, and human consumption, and allowing cheaper imports could render domestic production unremunerative,” an official said.
India’s agriculture minister Shivraj Singh Chouhan has also expressed reservations about opening the market to genetically modified soy and maize, citing food safety concerns. Since the approval of BT cotton in 2002, no commercial GM food crops have been cleared for cultivation in India, though the government in 2021 permitted 1.2 million tonnes of GM soymeal imports for animal feed on an exceptional basis.
Dairy imports have been similarly protected. Industry sources highlighted that India, the world’s largest milk producer since 1998, supports over 80 million farmers through its dairy ecosystem. “Our dairy sector has worked efficiently since the 1970s, and tariff barriers are vital for protecting rural livelihoods,” said R S Sodhi, president of the Indian Dairy Association.
Chicken legs, a staple US export subject to a 100% duty, are also unlikely to see concessions. Officials argue the Indian poultry industry supports millions of small-scale farmers and could face significant disruption from cheaper US imports.
While shrimp tariffs have been flagged for possible adjustment, officials say removing the current 30% duty would not have major domestic impacts but might trigger retaliatory tariffs on India’s shrimp exports to the US. In FY24, America accounted for 41% of India’s $7.38 billion shrimp exports, mostly Vannamei shrimp.
Beyond these products, there appears to be limited scope for US market access in other categories such as ethanol, almonds, apples, raisins, avocados, olive oil, spirits, and wines, sources noted.
Negotiators are expected to continue discussions on the interim pact over the coming weeks.
