Indian Agricultural Exporters See Boost Amid U.S. Tariff Exemptions

Indian agricultural exporters gain from U.S. President Trump's exemption of dozens of food items from tariffs. This move could revive lost demand, benefiting exports of tea, coffee, spices, and cashew nuts. The tariff relief signals progress in U.S.-India trade talks, although competition and costs pose challenges.

Indian agricultural exporters stand to benefit significantly following U.S. President Donald Trump's decision to lift tariffs on numerous food items, a move seen as a lifeline to reviving dwindling demand.

On Friday, Trump removed additional tariffs affecting over 200 food products amid soaring U.S. grocery prices. Indian exports, particularly tea, coffee, spices, and cashew nuts, suffered under previous tariff hikes, which saw duties increase to as high as 50%. These tariffs included a 25% levy on India's oil purchases from Russia.

Ajay Sahai of FIEO expressed optimism for exports valued between $2.5 and $3 billion due to the tariff exemptions, opening opportunities for higher-value products. However, Indian exporters face challenges from logistics, competition, and strict U.S. quality standards despite the favorable shift in tariffs.

(With inputs from agencies.)