Farm give and take: Cheaper livestock feed, challenge on soyabean, Pg1

Key Highlights:

• India and the US have reached an "interim" bilateral trade agreement involving agriculture.
• India will reduce or eliminate tariffs on US dried distillers’ grains (DDGs), red sorghum, tree nuts, fresh and processed fruit, soyabean oil, wine and spirits.
• In 2024-25, India's soyabean oil imports totaled 47.83 lakh tonnes, valued at $5.049 billion, with the US accounting for only 2.2%.
• India's fresh fruit imports reached $3 billion in 2024-25, including $1.12 billion from the US, which is a major source of almonds, walnuts, and apples.

Detailed Insights:

• The trade agreement does not open India's market to US soyabean, corn (maize), fuel ethanol, cotton, or dairy and poultry products.
• India's soyabean cultivation area was 12.95 million hectares in 2024-25, with a production of 15.26 million metric tonnes, mainly in Madhya Pradesh, Maharashtra, and Rajasthan.
• DDGs are protein-rich byproducts of corn and rice-based ethanol production used as livestock feed; India exported $86 million worth of DDGs in 2024-25, mainly to Vietnam, Bangladesh, and Nepal.
• India imposes high import duties on certain items, such as 150% on various liquors and significant duties on almonds and walnuts, potentially impacting trade dynamics.
• Tariff reductions on US fresh fruits and soyabean oil may negatively affect Indian farmers, despite government assurances of protecting them.

Key Concepts Involved:

• Tariff: A tax or duty imposed on goods when they are moved across international borders.
• Bilateral Trade Agreement: A commerce deal between two countries to lower trade barriers.
• Import Duty: A tax collected on goods that are imported into a country.