To acquire land. According to SEA data, soybean oil imports increased to 5.05 lakh tonnes in December compared to 3.71 lakh tonnes a year ago. Photo Credit: inewisstock
Coffee exporters are upbeat, tea exporters are expected to benefit from lower duty benefits, spice exporters are hoping for better days, while seafood exporters are expecting a big boost as the India-US trade agreement impacts agriculture and allied sectors.
Along with this optimism, apprehensions are also being raised in some quarters regarding the trade agreement. Apple growers are worried their returns will be hit, while traders say corn and soybean prices could be hit by imports of soluble dried distillers grains (DDGS), although many see only limited impact from the lowering of soybean oil tariffs.
The US has provided duty-free access to Indian coffee. Although the US is only the tenth largest buyer of Indian coffee, the deal could be a positive for India. Shipments of specialty coffee are likely to rebound, while the reduction in duty on instant coffee from 25 percent to zero could allow further penetration into the US market.
edge over china
Indian tea will get zero-duty access to the US market, giving it an edge over China. However, shippers do not see scope for significant growth in exports to the US in the near term.
After the trade agreement, exports of marine products to America are expected to come back into the market.
The Seafood Exporters Association of India said export volumes to the US will increase and a strong rebound is expected.
Spice exporters are now getting a level playing field with shippers from Vietnam, Indonesia and Cambodia. However, they want an end to non-tariff barriers.
import concerns
India can allow up to one lakh tonnes of apples from the US at a concessional tariff of 25 per cent. Producers are worried that they may be affected but government officials and a section of the business have allayed these fears.
Import of DDGS may bring down prices of soybean and maize, but India may impose a limit of 5 lakh tonnes.
At current prices, DDGS imports will not impact Indian soymeal or corn prices, traders say.
India imports more than 15 million tonnes of edible oils. Industry leaders say allowing soybean oil from the US at lower tariffs will put pressure on other sources like Argentina.
Published February 9, 2026
