India-US Trade Deal: Agriculture Remains Protected, Farmers' Produce Won't Be Impacted, Say Sources

Last Updated:February 06, 2026, 09:00 IST

According to sources, staples such as rice, wheat, soyabean, corn, dairy products and sugar are completely outside the ambit of the agreement.

Amid rising speculation over the key aspects of the proposed India-US trade deal, top government sources have clarified that Indian agriculture and mass-consumption food items remain protected. According to sources, staples such as rice, wheat, soyabean, corn, dairy products and sugar are completely outside the ambit of the agreement, addressing concerns around food security and farmer interests.

Officials stressed that the bulk of what Indian farmers produce will not be impacted, as agricultural imports from the United States will largely be limited to items that are not produced at scale in India. These imports, sources said, will not include mass-consumption commodities that could disrupt domestic markets.

Among the agricultural products expected to feature in the deal are select dry fruits, including American almonds, cashews, pecans, walnuts and pistachios. The emphasis, sources indicated, is on niche and premium segments rather than staples.

On the timeline, government sources said the trade deal could be formally signed as early as March. In the immediate term, both sides are expected to issue a joint statement within the next four to five days, outlining broad contours and signaling progress in negotiations.

Agriculture Minister Shivraj Singh Chouhan has also firmly stated that the agreement fully safeguards India’s agricultural interests, particularly those of the farm and dairy sectors.

He underlined that under the leadership and guidance of Prime Minister Narendra Modi, the deal reflects a new benchmark of diplomacy, development and dignity, with the Prime Minister making it clear from the outset that farmers’ interests are non-negotiable.

Addressing the media in Delhi, Chouhan reiterated that India’s staple grains, fruits, major crops, millets and dairy products remain completely secure and face no threat whatsoever.

He emphasised that the interests of small and large farmers alike have been fully protected, and that the agreement will create fresh opportunities rather than risks for Indian agriculture.

Responding to the apprehension that over half of India’s population depends on agriculture and that small farmers may be affected, the Minister assured that no sudden or disruptive entry of foreign products will take place in the Indian market. He stressed that no market segment has been opened in a manner that could harm Indian farmers, and all major crops, food grains, fruits and dairy products remain shielded.

On the confusion triggered by a recent tweet from the US Treasury Secretary about increased access for American farm products, Chouhan said that Commerce Minister Piyush Goyal has already clarified the facts in Parliament.

He reiterated that India has not opened its markets in any way that puts pressure on domestic farmers, and that the protections for key agricultural commodities remain intact.

The backdrop to this landmark pact is a period of heightened trade tensions between New Delhi and Washington in 2025. After a sharp escalation in tariffs — with the United States imposing punitive reciprocal duties that reached up to 50 per cent on Indian exports — bilateral relations had cooled and negotiations were at a standstill through much of last year.

The breakthrough came after a phone conversation between Prime Minister Narendra Modi and US President Donald Trump when the latter announced the agreement on a trade deal, framing it as a product of friendship, respect and mutual interest following their call.

In his social media post, President Trump wrote that speaking with PM Modi was an “honour" and that upon Mr Modi’s request, the United States agreed to substantially reduce reciprocal tariffs — from 25 per cent (and effectively 50 per cent on some goods) to 18 per cent. He also linked the deal to broader strategic talks, including energy cooperation and support for peace efforts globally.

On X, PM Modi thanked President Trump for the tariff reduction and said the agreement reaffirmed the strength of ties between two of the world’s largest democracies. He said “Made in India" products would now attract reduced tariffs in the US market and highlighted opportunities for shared prosperity.

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