Experts Advocate for Lower Tariffs in India-US Agricultural Trade

Industry experts stressed the need for lower tariffs and harmonisation of local norms to enhance India-US agricultural trade. At the 21st Indo-US Economic Summit, challenges such as supply chain disruptions, absence of a free trade agreement, and local quality norms were discussed. Recommendations included technology integration, sustainability, and climate-smart agriculture.

Industry experts on Tuesday underscored several challenges in India-US agricultural trade, advocating for lower tariffs and the harmonisation of local norms to boost this significant economic relationship. The points were made during a session on agro-processing at the 21st Indo-US Economic Summit, organised by the Indo-American Chamber of Commerce (IACC).

Sanjeev Bisht, Vice President of Value Added Products at ITC Ltd's Agri-Business Division, highlighted key issues such as Red Sea-related supply chain disruptions, the absence of a free trade agreement, and differing local quality norms. 'If we want to increase exports, we need to understand the quality concerns of that country,' Bisht said, stressing the importance of aligning standards between India and the US.

Chirag Jain, Partner at Grant Thornton Bharat, noted that while the US accounts for 10 per cent of India's agricultural exports, Indian products represent only 2.6 per cent of US farm imports, indicating substantial room for growth. Jain recommended technology transfer, implementing successful R&D models, and enhancing trade in fresh produce as steps to strengthen agricultural ties.

(With inputs from agencies.)