zero tariff
There is great relief news for Indian agricultural exporters. According to government notifications, India has a trade surplus of about $1.3 billion in agricultural trade with the US. Now agricultural products worth $1.36 billion will not have to pay any additional duty in the American market. Indian agricultural exports are expected to directly benefit from this decision.
Zero tariff effect on 75% exports
According to the report, about 75 percent of agricultural exports will now come under the scope of zero tariff system. Reciprocating implementation of zero duty on products worth about $1.035 billion will provide great support to Indian farmers and exporters. This will reduce export costs and increase the competitiveness of Indian products in the American market.
Rice, spices and dry fruits will be beneficial
Major commodities exported to America include rice, spices, oilseeds, tea and coffee. India’s share in American rice imports is about 24 percent, which may further strengthen after this agreement. Whereas the share of tea, coffee and spices is about 3 percent, which will strengthen the plantation sector.
Apart from this, India also has a good share in products like coconut oil, copra, vegetable wax, sesame and poppy seeds, betel nut and cashew nuts. There is a possibility of increase in the income of farmers due to increase in exports in these areas.
Relief to fisheries sector also
India’s fisheries sector was affected by the US tariffs. America imports about 10 percent of its total imports from India. Now the reduction in tariff, especially relief up to 18 percent, is a positive sign for the sector. Experts believe that the zero tariff system will give a new boost to Indian agricultural exports and this step can prove to be important in increasing the income of farmers.
