India will eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural products—including dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits—among others, a joint India-US statement issued on Saturday said.
As per the joint statement, both countries have reached “a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade (Interim Agreement).”
Of the agricultural items mentioned in the statement, India is among the biggest buyers of soybean oil globally. India imported 47.83 lakh tonnes (worth $5.049 billion) of soybean oil during the fiscal year 2024-25, which accounted for 6.34 per cent of the country’s total import bill of $721.2 billion in value terms.
During 2024-25, Argentina (25.56 lakh tonnes) was the top soybean oil supplier to India, accounting for over half of the imports, followed by Brazil, Nepal, Switzerland, Russia and the Netherlands. The US accounted for just 2.2 per cent (or 1.06 lakh tonnes) of India’s total soybean oil imports.
In recent months, there has been a sharp growth in imports of soybean oil from the US, with the figure reaching 1.22 lakh tonnes during the April-November period of 2025-26. Currently, India applies a 45 per cent standard duty on soybean oil imports, while the rate is lower for preferential areas—35 per cent.
In 2024-25, soybean was cultivated on an area of 12.95 million hectares, while the production stood at 15.26 million metric tonnes and the yield stood at 1,179 kg per hectare. Soybean, a kharif crop, is mainly grown in Madhya Pradesh, Maharashtra and Rajasthan.
Globally, Brazil is the top soybean producer, accounting for 40 per cent (or 171.5 million tonnes) of the total output in 2024-25, and is followed by the US, which is the second largest producer with 28 per cent (119.05 million) of the output. Argentina, which is India’s biggest source of soybean oil imports, ranked third in soybean production, accounting to 12 per cent (51.11 million tonnes) of the total output. India accounted for only 3 per cent of the global soybean production in 2024-25.
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The statement also mentioned two animal feed items—dried distillers’ grains (DDGs) and red sorghum for animal feed. DDGs and Dried Distillers Grains with Soluble (DDGS are protein-rich by-products produced during the corn and rice-based ethanol production and are used as a feed for livestock.
As per the US Grains & BioProducts Council, the US produces 44 million tonnes of DDGS. In recent years, the DDGS production has increased in India, with more grain-based ethanol plants coming up. Currently, India imposes a 15 per cent duty on DDGS imports. In 2024-25, India exported $86 million worth DDGS mainly to Vietnam, Bangladesh and Nepal.
India imported fresh fruits worth $1.12 billion from the US
As far as fresh fruits are concerned, India imported $3 billion worth fresh fruits during 2024-25, of which imports from the US accounted for $1.12 billion. The US is a major source of almonds, walnuts and apples. India currently imposes an import duty of Rs 42 per kg on almonds in shell and Rs 120 per kg on shelled almonds, while on walnut the duty stands at 120 per cent on in shell walnut and 100 per cent on shelled.
India exported just $16 million worth of sorghum during 2025-25, which mainly went to the UAE, Bangladesh and Saudi Arabia. India did not record imports of the commodity last year.
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As far as wine and spirits are concerned, India imported wines worth $26 million during 2024-25, which came mainly from Australia, Singapore, France and Italy. India imported $600 million worth of spirit and liquor in the last fiscal year, which came from the UK, Singapore, the UAE, Ireland and the US. India imposes 150 per cent import duties on various liquors, including bourbon whiskey, scotch, rum, gin, vodka, and tequila.
Bad news for farmers?
While Commerce Minister Piyush Goyal said that “no concessions have been extended to sensitive agricultural sector produce”, Ajay Srivastava, founder of think tank Global Trade Research Initiative, said that tariff reductions on US fresh fruits such as apples and oranges, and on soybean oil, are likely to hurt Indian farmers.
“Tariff reductions on U.S. fresh fruits such as apples and oranges, and on soybean oil, are likely to hurt Indian farmers and could face strong opposition from farmer groups. It is also unclear which “additional agricultural products” have also been included for tariff cuts,” he said in a statement. Srivastava said that the joint statement also mentions “additional products” of which details are yet to be known.
“The interests of our farmers remain paramount in all trade negotiations. The Modi government remains fully committed to protecting our Annadatas and securing rural livelihoods. No concessions have been extended to sensitive agricultural sector produce in grains, fruits, vegetables, spices, oilseeds, dairy, poultry, & meat amongst many others while securing preferential access for Indian goods through the India-U.S. Interim Agreement framework,” Goyal had posted on X.
