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India’s farm trade with the United States is set to advance with Donald Trump winning the presidential elections.
Trade experts feel that India’s agriculture exports will rise in the days ahead. At the same time imports of US farm products into India such as tree nuts – almonds, walnuts and fresh fruits such as apples and blueberries will also see an increase as the world’s largest agricultural exporter would be looking for increased market access for its products.
China plus one
“Trump’s comeback is a positive for India’s agriculture trade. Our exports to America will gain. Tea, coffee, spices...all our commodities will gain,” said Prof Rakesh Mohan Joshi, Vice-Chancellor, Indian Institute of Foreign Trade. India will definitely gain from the China-plus-one strategy being adopted by the US.
“India will receive big market access opportunity in the US because of supply chain re-arrangements,” said trade policy analyst S Chandrasekaran. He feels that exports of Indian products such as guar gum, meat may stand to gain, while soyabean meal will also see an opportunity.
India’s agri exports to the US stood at over $5.19 billion during 2023-24, a tad lower from the previous year’s $5.22 billion. Major agri products exported from India include rice, sugar, spices, cotton among others.
Market access
Trade sources said the interests of American products will prevail going ahead as US agricultural producers will be looking for opportunities to tap the growing demand for imported food and agricultural products in India, the most populous country and also one of fastest growing economies. Last year India has agreed to reduce tariffs on certain US products, including chickpeas, lentils, almonds, walnuts, apples. US is the largest exporter of the Agro produce in the world with 18 per cent market share.
India imported over $1.842 billion worth of American agricultural and related products during 2023 with tree nuts accounting for over $1 billion. Almonds imports accounted for $834 million, followed by pistachio shipments touching $145 million. Other commodities exported by the US to India include cotton at $237 million and ethanol at over $148 million among others. With the removal of retaliatory tariffs in 2023, the US apple exporters are looking to re-establish market in India.
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