Farm livelihood concerns allayed as agri, dairy sectors kept out of US deal

Centre says sensitive sectors such as agriculture and dairy are outside the India-US trade deal, easing concerns even as US officials speak of higher farm exports

Until the government's statement came, there were misgivings about the impact the deal between India and the United States (US) would have on the livelihoods of farmers here.

 

The government cleared the air by saying that sensitive sectors such as agriculture and dairy had been kept out of it in accordance with its position in all negotiations.

 

Repeated statements from US authorities that agriculture was not totally off the table were responsible for this.  

 

In an X post, US Secretary for Agriculture Brooke Rollins, while thanking President Donald Trump for chalking out a trade deal that “delivers for the American farmers”, said the deal would export more American farm products to the Indian market, reducing prices and making rural US wealthy. 

“The new US-India deal will export more American farm products to India’s massive market, pumping cash into rural America,” she said.

 

Rollins added that in 2024, America’s agricultural trade deficit with India was $1.3 billion. She said the deal would help reduce that deficit.

 

The Congress and other parties sought clarification from the government on what concessions had been provided to the US on agriculture, something which the government sought to clarify later in the day.  

 

The data showed in 2024 (calendar year) the US exported to India agricultural products worth $2.2 billion while imports from India were at over $6.2 billion.

 

The data from the US Department of Agriculture showed from January to November 2025, US exports of agricultural and related products to India were up almost 34 per cent while imports from India grew 5 per cent. 

 

However, with the trade deal in place, several commentators said that this could be corrected and the pace of imports from India would strengthen.

 

Rice exporters hope US President Donald Trump’s announcement of a trade deal with New Delhi, slashing US tariffs on Indian goods to 18 per cent, would give them an opportunity to increase shipments to America, a small but valuable market for their products.

 

In a statement, the Indian Rice Exporters Federation (IREF) welcomed the deal and called it a reset in trade conditions at a time when the country was entering a new rice-production season with record output and robust export readiness.

 

India’s rice exports to the US grew despite tariffs increasing to 50 per cent, according to the IREF’s data.

 

India in FY25 exported 274,213 tonnes of basmati rice to the US, with the shipments valued at ₹2,849.16 crore and an average realisation of ₹103,903 per tonne.

 

In dollar terms, basmati exports stood at $337.10 million, with an average rate of $1,229.33 per tonne. Exports of non-basmati rice in FY25 were at 61,341 tonnes, valued at ₹462.50 crore ($54.64 million).

 

The momentum continued in FY26.

 

Between April and November last year, basmati rice sent to the US reached 199,558 tonnes, valued at ₹1,749.17 crore ($201.13 million).

 

Non-basmati shipments during this period stood at 40,960 metric tonnes at ₹284.12 crore or $32.71 million. “While average realisations softened compared to the previous year, volumes remained robust, reinforcing the view that Indian rice remains essential for US buyers and consumers,” the IREF said.

 

The monthly shipment data further underscores this trend.

 

In September 2025, India exported 22,668 tonnes of rice to the US as against 21,329 tonnes in September 2024, even as values moderated.

 

October 2025 saw a sharper jump, with volumes rising to 29,015 tonnes from 22,606 tonnes a year earlier.

 

In November 2025 exports were at 24,156 tonnes versus 21,723 tonnes in November 2024.

 

“These gains came despite the imposition of a 50 per cent tariff, highlighting the structural strength of India’s rice export competitiveness,” an IREF statement said.

 

S Sankarasubramanian, chairman, Fertiliser Association of India, and managing director and chief executive officer, Coromandel International, said in statement that while India’s agrochemicals exports to the US were modest at around $700 million, the sharp escalation of tariffs over the past year had begun to weigh on competitiveness and planning decisions.

 

This correction improves market attractiveness and opens up the room for Indian manufacturers to strengthen technology-led partnerships, particularly in specialised and sustainable nutrient solutions.