President Donald Trump’s rollback of certain tariffs appears to have given Indian farmers some much-needed relief. Indian agricultural exporters are among the beneficiaries of his decision to exempt dozens of food items from the reciprocal tariffs regime — a move analysts say could help revive lost demand.
“The move benefits Indian farmers and exporters of tea, coffee, cashew and fruits and vegetables,” a senior official involved in Indian farm export policy said on condition of anonymity.
Ajay Sahai, director general of the Federation of Indian Export Organisations (FIEO), says that between $2.5 billion and $3 billion of exports will benefit from the tariff exemptions.
“This order opens space for premium, speciality and value-added products,” he said. “Exporters who shift towards higher-value segments will be better protected from price pressures and can tap rising consumer demand.”
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The executive action, made retroactive to Nov. 13, was intended to ease grocery costs amid growing public concern over food inflation. The move follows new trade agreements with countries including Argentina, Ecuador, Guatemala, and El Salvador, which helped facilitate tariff reductions on imported food items.
Ajay Srivastava, founder of the Global Trade Research Initiative think tank, said India’s U.S.-bound farm exports – focused on a few high-value spices and niche products – would register limited gains given its weak presence in key exempt items such as tomatoes, citrus fruits, melons, bananas and fruit juices.
“The tariff shift would marginally strengthen India’s position in spices and niche horticulture and help revive some lost U.S. demand after the tariff hikes,” Srivastava added.
The tariff rollback is part of a broader effort to stabilize consumer prices and reduce the economic burden on households. By removing duties on these essential imports, the administration aims to increase supply and lower retail prices for commonly consumed goods.
Analysts note that while the measure may provide short-term relief to consumers, it could also have longer-term implications for domestic producers who previously benefited from protective tariffs.
Exporters, however, fear that other factors will keep potential gains in check, pointing to high freight costs, strong competition from Vietnam and Indonesia and tougher U.S. quality requirements.
“Tariff relief is important, but market recovery also depends on logistics and our ability to match prices,” one exporter said.
The move aims to ease U.S. grocery costs amid inflation, reflecting a balance between trade policy, domestic price stabilization, and political responsiveness. For Indian farmers and exporters, this represents a chance to revive lost demand and expand into higher-value markets less vulnerable to price pressures.
However, the overall gains may be limited due to India’s weak presence in some major exempted products like tomatoes, citrus fruits, bananas, and fruit juices, coupled with strong competition from countries such as Vietnam and Indonesia.
Exporters also face challenges from high freight costs and stringent U.S. quality standards. While tariff relief provides short-term support, long-term growth will depend on improved logistics, diversification, and the ability to remain competitive in global markets.