Farmers and exporters in the Nashik district are expressing concern following the announcement by U.S. President Donald Trump regarding increased import duties on agricultural products. This development is impacting market dynamics, particularly for onion and grape producers, who are key exporters to the United States.
The U.S. government has elevated import duties on Indian agricultural goods from 5.3% to 26%, with an additional 10% duty scheduled for April 5, 2025. Speculation suggests the duty could escalate to 100%, creating uncertainty for Indian exporters.
Nashik, a major producer of onions and grapes in India, exports a substantial portion of its produce to the U.S. Other fruits, such as raisins and mangoes, especially from the Konkan region, are also exported after processing at the Farmers' Radiation Center in Lasalgaon. There is concern that increased import taxes will reduce the competitiveness of Indian produce in the American market.
The U.S. stands as India's largest agricultural export destination. In 2024, India exported $5 billion worth of agricultural products to the U.S., including rice, shrimp, honey, plant extracts, castor oil, and black pepper. The shift in import policy is anticipated to affect not only Nashik farmers but also exporters throughout India.
India applies an average 37.7% duty on American agricultural imports, while the U.S. previously maintained a lower rate for Indian goods. The abrupt increase in import duties is perceived as a political and economic maneuver during Trump's second term, affecting confidence in agricultural export markets.
Despite the Indian government's recent 20% reduction in onion export duty, onion prices have risen, likely due to market instability and uncertainty about U.S. policy changes.
Farmers are urging the central government to protect their interests and clarify future trade policies with the U.S., as the agriculture sector monitors developments closely.
Source: Lokmat Times