US Admits India ‘Difficult Challenge’ in Agriculture as Trade Talks Intensify

US Admits India ‘Difficult Challenge’ in Agriculture as Trade Talks Intensify

The US acknowledges India’s firm stance on protecting its agriculture sector during ongoing trade deal talks, as both nations negotiate tariffs, market access, and a $500 billion trade target by 2030 amid growing global competition.

Amid ongoing trade deal negotiations between India and the United States, Washington has acknowledged that persuading New Delhi on agricultural matters remains a significant challenge, highlighting the complexity of one of the most sensitive sectors in bilateral trade discussions.

US Trade Representative Jamieson Greer recently stated that India has consistently protected its agricultural sector and is expected to continue doing so. His remarks come at a time when an Indian delegation has arrived in the United States for negotiations on a trade agreement, marking the first such meeting in the past six months.

The US official made these observations during a hearing on the Trump administration’s 2026 trade policy before the House Ways and Means Committee of the US Congress. During the session, Congressman Randy Feenstra raised concerns about US access to India’s agricultural market and exports of animal feed products such as dried distillers grains (DDGs), soybean meal, and ethanol. Feenstra represents a district known for producing eggs, corn, soybeans, pork, and biofuels.

Addressing the committee, Greer said, “India is a difficult challenge... they have long protected their agricultural markets.” He added that India seeks to safeguard a substantial portion of the agreement, though there are areas where mutual consensus may be achievable. He identified DDGs (distillers dried grains) as one such example.

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The issue holds significance as, under the interim bilateral agreement reached on February 7, India permitted limited imports of DDGs from the United States, accounting for about 1 percent of its annual consumption of 50 million tonnes. The joint statement also indicated that India would reduce or eliminate tariffs on US industrial goods and several food and agricultural products, including DDGs and red sorghum, which are used as animal feed.

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Meanwhile, India’s Ministry of External Affairs spokesperson Randhir Jaiswal confirmed on Thursday that negotiations on the trade deal are ongoing. He stated that both countries are working toward a balanced, mutually beneficial, and forward-looking agreement aimed at achieving a bilateral trade target of 0 billion by 2030. This would represent more than double the approximately 2 billion in trade recorded in 2024.

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According to sources, the discussions are progressing on two primary issues: establishing a robust and legally sound tariff framework following a Supreme Court ruling, and positioning India more competitively against countries such as China, Vietnam, Bangladesh, Sri Lanka, and Indonesia.

The Indian delegation is expected to return to New Delhi by Friday, with negotiations between the two nations likely to continue. The outcome of these talks will play a decisive role in shaping the future trajectory of India-US economic ties, particularly in sectors where national interests and global trade ambitions intersect.

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