Lok Sabha Question No. 5080 (UNSTARRED), answered on 2026-03-24
Subject: Import and Export of Agricultural Products
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Ve Vaithilingam, Shri Dharmendra Yadav

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE

## LOK SABHA UNSTARRED QUESTION NO. 5080 ANSWERED ON 24/03/2026

IMPORT AND EXPORT OF AGRICULTURAL PRODUCTS

5080.  SHRI VE VAITHILINGAM:

## SHRI DHARMENDRA YADAV:

Will the Minister of COMMERCE AND INDUSTRY ( वाणिज्य एवं उद्योग मंत्री ) be pleased to state:

- (a) whether any changes have been made in tariffs related to the import and export of agricultural products under the recent India USA tariff/trade agreements, if so, the details of the agricultural products on which import duties have been reduced or removed;
- (b) whether the Government has assessed the potential impact of this agreement on Indian farmers' income, MSP arrangements and the domestic agricultural market, if so, the details thereof;
- (c) whether  the  Government  has  considered  the  shifting  export  environment  in which  increased  US-tariffs  created  new  pressures  on  Indian  agricultural commodities while triggering opportunities in diversified global markets;
- (d) the steps taken by the Government for encouraging farmers, producer groups and  agribusiness  firms  to  supply  a  wider  range  of  products,  including horticulture, processed foods and niche crops to emerging destinations outside the United States;
- (e) the measures proposed by the Government to enhance market-linked farmer support,  improve  international  compliance  capability,  upgrade  storage  and cold-chain systems and ensure that India's agricultural-export sector remains stable despite policy fluctuations abroad; and
- (f) whether it is a fact that cheaper agricultural imports is likely to harm small and marginal farmers in the country and if so, the details thereof and the protective measures (safeguard measures) proposed or implemented by the Government to safeguard the interests of farmers?

## ANSWER

वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA)

(a)  to  (c)  &  (f) (i)  India  and  the  United  States  (U.S.)  announced  a  trade  deal  on February 02, 2026. A Joint Statement for the same was released on February 07 2026. On February 07,  2026,  25%  additional  ad  valorem  tariffs  imposed  by  the  U.S.  on certain India's exports citing India's imports of Russian oil were removed. Subject to the  conclusion  of  the  Interim  Agreement,  the  U.S.  will  provide  preferential  market access to certain Indian goods. India has fully protected its agricultural sectors through

a carefully designed Exclusion Category, ensuring no tariff concessions are provided in the Agreement on key products such as Rice, Wheat, Poultry, Dairy, Soyameal, Maize, Millets, Groundnuts, Honey, Tobacco etc.  Overall the terms of concessions in the  Agreement  are  expected  to  benefit  Indian  farmers  and  open  new  export opportunities.

(ii)  The  agreement  will  provide  opportunities  to  Indian  farmers  and  fishermen  to enhance their exports in their areas of strength, such as marine products, basmati rice, spices, tea and coffee, oilseeds, and certain fruits. It will also provide preferential tariff access  to  a  big  market  for  agro  forestry-linked  products  such  as  vegetable  saps, waxes, nuts, plating material, coconut, poppy seeds, vegetables and certain roots, along  with  processed  fruit  products  such  as  juices,  pulp  and  jams.  The  tariff concessions will create a conducive environment for Indian farmers to sell to a huge American annual import market of more than Rs.14 lakh crore.  Further information regarding  the interim trade deal is also available at the following web  link: https://www.commerce.gov.in/wp-content/uploads/2026/03/FTAs-achievement.pdf

(iii) India has offered limited and carefully calibrated tariff concessions on select agricultural products while safeguarding domestic sensitivities through quotas, phased concession and partial duty reductions. On products such as Apples, Walnuts and Soyabean Oil where India imports in significant quantities due to domestic demand exceeding production, concession is limited and quota-based so that imports help in diversification of sourcing. The quotas are well within current global imports so that supply  gaps  are  met  without  adversely  affecting  Indian  farmers.  Similarly,  in  the backdrop of growing demand, animal feed related products such as DDGS and NonGM Red Sorghum, have been considered in limited quantities and with partial tariff concessions so that there is no adverse impact on domestic feed crops. Likewise, Cotton has been offered in a calibrated quota-based concession considering India's existing trade pattern of both importing and exporting cotton and cotton products to meet quality requirements.

(iv) Pursuant to U.S. Supreme Court judgement dated February 20, 2026 invalidating reciprocal tariffs, the reciprocal tariffs are no longer in force. The U.S. Government has issued Executive Orders imposing 10% tariffs on certain products from all countries. The Government is studying all the developments thereafter for their implications and remains engaged with the U.S. Government.

(d)  &  (e)  The  Government  continues  to  work  with  stakeholders  (Exporters  and Industry) to mitigate the impact of the US tariff measures on Indian exports through a comprehensive multi-pronged strategy encompassing intensive engagement with the US  Government  for  a  mutually  beneficial  India-US  Bilateral  Trade  Agreement, immediate relief through Trade relief measures of RBI, Credit Guarantee Scheme for Exporters, enhancement of domestic demand through next generation GST reforms, Export Promotion measures such as the new Export Promotion Mission which provide support and assistance to our exporters, pursuing FTAs with new countries and better utilization  of  existing  FTA.  It  is  expected  that  these  measures  will  also  enhance diversification  and  resilience  in  India's  trade  relationships. Details  of  some  of  the aforementioned measures are as follows:

## 1. Export Promotion Mission (EPM)

The Mission will provide a comprehensive, flexible, and digitally driven framework for export promotion, with a total outlay of Rs.25,060 crore for FY 2025-26 to FY 203031.  EPM  marks  a  strategic  shift  from  multiple  fragmented  schemes  to  a  single,

outcome- based, and adaptive mechanism that can respond swiftly to global trade challenges and evolving exporter needs.

The Mission will operate through two integrated sub-schemes:

i. NIRYAT PROTSAHAN - affordable trade finance focuses on improving access to for  MSMEs  through  a  range  of  instruments  such  as  interest  subvention,  export factoring,  collateral  guarantees,  credit  cards  for  e-commerce  exporters,  and  credit enhancement support for diversification into new markets.

ii. NIRYAT DISHA - focuses on non-financial enablers that enhance market readiness and competitiveness, including export quality and compliance support, assistance for international branding, packaging, and participation in trade fairs, export warehousing and logistics, inland transport reimbursements, and trade intelligence and capacitybuilding initiatives.

The Mission is designed to directly address structural challenges that constrain Indian exports, including limited and expensive trade finance access, high cost of compliance with  international  export  standards,  inadequate  export  branding  and  fragmented market access, and logistical disadvantages for exporters in interior and low-exportintensity regions.

Under EPM, priority support will be extended to sectors impacted by recent global tariff escalations,  such  as  textiles,  leather,  gems  &  jewellery,  engineering  goods,  and marine products. The interventions will help sustain export orders, protect jobs, and support diversification into new geographies.

2. Financial  Assistance Scheme (FAS) -  The  Department  of  Commerce  through Agricultural  and  Processed  food  products  Export  Development  Authority  (APEDA) provides  financial  assistance  to  its  member  exporters  of  APEDA  from  across  the country,  for  export  promotion  of  its  Scheduled  products  under  Agriculture  and Processed  Foods  Export  Promotion  Scheme  of  APEDA  for  the  15th  Finance Commission Cycle (2021-22 to 2025-26) in following three broad areas:

i.  Scheme  for  infrastructure  Development-  Financial  assistance  for  setting  up  of packhouse facilities with packing / grading lines, pre-cooling unit with cold storage and refrigerated transportation etc., cable system for handling of crops like banana, preshipment treatment facilities such as irradiation, vapor heat treatment, hot water dip treatment and common infrastructure facilities, reefer vans and missing gap in the existing infrastructure of individual exporters.

ii.  Scheme for Quality Development -Financial assistance for purchase of laboratory testing equipment, installation of quality management system, handheld devices for capturing farm level coordinates for traceability and testing of water, soil, residues and pesticides etc.

iii. Scheme for Market Promotion- The assistance covers participation of exporters in international  trade  fairs,  organizing  buyer  seller  meets  and  developing  packaging standards for new products and upgrading the existing packaging standards.

The  details  of  financial  assistance  guidelines  are  available  at  APEDA  Website www.apeda.gov.in under the 'Scheme' tab.

3. Credit Guarantee Scheme for Exporters has also been approved to provide 100% credit guarantee coverage by National Credit Guarantee Trustee Company Limited (NCGTC) to Member Lending Institutions (MLIs) for extending additional collateral free credit  facilities  up  to  Rs.20,000  crore  to  eligible  exporters,  including  MSMEs.  The Scheme is expected to enhance the global competitiveness of Indian exporters and support diversification into new and emerging markets. Enabling collateral-free credit

access  will  strengthen  liquidity,  ensure  smooth  business  operations,  and  reinforce India's progress towards achieving the USD 1 trillion export target.

4. Trade Relief Measures: The Reserve Bank of India (RBI) has also initiated trade relief measures for eligible affected exporters including provision for debt repayment moratorium and extension of tenure for export credit.

5. Leveraging  Free  Trade  Agreements :  The  Government  aims  for  promotion  of Export Diversification and has signed sixteen (16) Free Trade Agreements (FTAs) and six  (06)  Preferential  Trade  Agreements  (PTAs)  with  several  key  trading  partners. Government is working with all stakeholders to enable our exporters to better utilize the benefits of India's FTAs with major markets such as Japan, Korea, UAE etc. and effectively utilize the opportunities that have been created with the recent concluded FTAs such as with the EFTA countries, UK, Oman and New Zealand. The Government has also recently concluded FTA negotiations with the European Union.

6. The  Scheme  related  to  Cold  Storage -  Government  is  implementing  various schemes under which financial assistance is available for setting up of post-harvest processing and cold chain infrastructure for horticultural produce including perishable horticulture  produce  throughout  the  country.  Under  the  Mission  for  Integrated Development of Horticulture (MIDH), financial assistance is provided for setting up of post-harvest  management  infrastructure  including  pack  houses,  cold  storages, refrigerated transport, ripening chambers, Integrated cold-chain infrastructure, Secondary Processing units in the country.  In addition, Ministry of Food Processing Industries  (MoFPI)  also  implements  schemes  such  as  Pradhan  Mantri  Kisan SAMPADA Yojana (PMKSY), which includes components for integrated cold chain and value addition infrastructure.

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