When global trade talks take centre stage, India’s agriculture stands firm on protecting farmer interests and domestic programmes. Imagine a future where energy self-reliance and rural incomes are shaped not by compromise but by strategic clarity and conviction.
India’s sugar and ethanol sectors are set firmly outside the ambit of the ongoing India–US trade negotiations, according to Deepak Ballani. In a recent interaction, Ballani clarified that there’s “no question” of ethanol being included in the deal, and that crucial programmes like India’s ethanol blending initiative won’t be up for trade-offs.
This assurance comes amid speculation about how agricultural products might figure in broader discussions between the two nations.
India currently boasts nearly 2,000 crore litres of ethanol production capacity, with another 500 crore litres under development, while domestic consumption remains significantly lower than total capacity. Given this surplus and explicit government assurances, ethanol and sugarcane interests remain protected from potential disruptive trade pressures.
Beyond trade talk assurances, industry stakeholders are pushing for structural clarity in pricing and distribution policies. They highlight the need for simpler, more predictable ethanol procurement processes by oil marketing companies, reflecting concerns that outdated or complicated rules could discourage investment and distort crop choices.
Maize-based ethanol expansion, for example, has altered crop balances in some regions, triggering calls for balanced feedstock policies.
Analysts and producers also point to the broader context of food security, farmer incomes and India’s net-zero goals. While the India–US framework now excludes ethanol, domestic policy refinement remains a priority to ensure the benefits of the ethanol blending programme are fully realised without undermining core agricultural objectives.
By maintaining a clear stance that protects domestic sectors and by resolving internal industry challenges, India aims to preserve farmer interests and strengthen its bio-energy ecosystem within the evolving global trade environment.
India’s decision to keep ethanol out of the India–US trade discussions sends a clear message: farmer interests and energy security remain top priorities. By protecting the ethanol blending programme, the government is reinforcing its commitment to rural incomes, biofuel expansion and long-term sustainability goals.
However, domestic policy refinement will be equally important. Streamlined procurement processes, balanced feedstock management and stable pricing mechanisms can strengthen investor confidence and support farmers. As India advances toward higher blending targets and cleaner energy ambitions, clarity in both trade and internal policy will be essential to ensure steady growth in the sugar and ethanol ecosystem.
India’s seafood export industry is seeing renewed hope as lower US tariffs ease trade pressure. After months of slowdown, exporters expect demand to rise again. The tariff cut could reshape India–US seafood trade, bringing relief to exporters and coastal communities that depend on global markets.
Indian seafood exporters are looking forward to better opportunities as the United States has consented to lower the import duties on specific goods coming from India to 18%, which is a reduction from the former tariff of 25%. The Seafood Exporters Association of India (SEAI) expressed gratitude for the decision, suggesting that it ought to facilitate a renewed increase in exports to the US following a period of decreased activity.
During the current fiscal year, there has been a substantial decline in Indian fish exports to the United States. Specifically, between April and November, the quantity of exports decreased by approximately 15%, with the overall value decreasing to about $1.72 billion, compared to $1.84 billion during the preceding year.
K.N. Raghavan, the General Secretary of SEAI, mentioned that this was primarily caused by the increased taxes faced by exporters and the ambiguity surrounding future tariff rates, which led to buyer reluctance in making new purchase requests.
The significant shift arises from the United States loosening tariffs as part of a wider trade agreement revealed at the beginning of February. Indian exporters experienced considerable difficulties in August of the previous year when Washington enforced substantial tariffs of up to 50% on Indian commodities, which incorporated a 25% surcharge connected to India’s prior acquisitions of Russian oil.
This made Indian seafood less competitive when measured against products from other countries.
The majority of India’s exports to the US consist of frozen fish and shrimp, with the US being among the primary destinations for Indian fish products, following China and the European Union. The American market is very important for many fishermen and processing firms in India, as it accounts for a large portion of their total exports.
According to Mr. Raghavan, the reduction of the tariff to 18% “creates a level playing field once more,” thereby boosting the competitiveness of Indian seafood in the market. He further stated that exporters now anticipate a rebound in demand and a return of export volumes to levels seen before the increase in tariffs.
Throughout the period of elevated tariffs, a significant number of purchasers opted to store goods in bonded warehouses rather than promptly clearing them, as they awaited clarity on the final policy.
Although this tariff decrease does not eliminate all obstacles, industry leaders believe that it represents a fresh opportunity. They express optimism that the enhanced trade conditions will contribute to reestablishing trust among purchasers and mitigating the accumulated uncertainty that had hampered new orders.
This advancement has the potential to mark a crucial juncture for the Indian seafood industry, which sustains a vast number of employment opportunities in coastal areas. As trade restrictions are eased and demand recovers, numerous exporters are now approaching the future with cautious optimism.
The US tariff cut to 18 percent is a positive boost for India’s seafood exports. It improves competitiveness, restores buyer confidence, and supports exporters and fishermen. With better trade conditions, shipments to the US are expected to recover gradually, helping the seafood sector move towards stable growth in the coming months.
After nearly two decades of on-and-off negotiations, India and the European Union have finally sealed the India–EU Free Trade Agreement. This move could reshape India’s trade future. Often described as the “mother of all trade deals,” this agreement is not just about reducing tariffs or increasing exports. It is about India firmly positioning itself as a global trade partner at a time when the world economy is searching for stability.
The India–EU free trade deal 2026 covers two of the world’s largest economic regions, representing almost 1.9 billion people and around 25 percent of global GDP. For India, this is one of the most ambitious trade agreements ever signed.
What Is the India–EU Free Trade Agreement?
The India–EU FTA is a comprehensive trade pact aimed at strengthening India–EU bilateral trade by lowering or removing customs duties, easing market access, and improving cooperation in services and investment.
Under this agreement, both sides have agreed to reduce trade barriers across goods, services, and professional mobility. The deal also includes commitments related to sustainable development, labour standards, and climate goals, making it more than just a traditional trade pact.
For those wondering what the India–EU trade deal includes, the focus is on long-term economic cooperation rather than short-term gains.
Why the India–EU Trade Deal Is Important
The India–EU trade agreement explained in simple terms comes down to three key goals: boosting exports, creating jobs, and diversifying trade partners.
The European Union is already one of India’s top trading partners. With the FTA in place, India gains smoother access to a high-value market, while the EU gets entry into one of the world’s fastest-growing economies.
This deal also reduces India’s dependence on a limited number of export destinations and strengthens its *global trade strategy*.
How Will the India–EU FTA Benefit India?
One of the most searched questions is “how the India–EU FTA will benefit India” , and the answer lies mainly in exports and employment.
Indian exporters in sectors such as textiles, garments, leather goods, marine products, engineering goods, chemicals, gems and jewellery are expected to gain significantly. Many of these products will now face lower or zero tariffs in EU markets, making Indian goods more competitive.
The India–EU FTA impact on Indian exports could be substantial, especially for labour-intensive sectors that support millions of livelihoods. MSMEs, which form the backbone of India’s manufacturing ecosystem, stand to benefit from easier access to European buyers.
Sector-Wise Impact of the India–EU FTA
The India–EU free trade agreement sectors cover a wide range of industries:
Textiles and Apparel: Reduced duties can help Indian manufacturers compete with other Asian exporters. The India–EU FTA textile sector is expected to see strong growth.
Gems and Jewellery: With tariff reductions, Indian jewellery could become more attractive in European markets.
Chemicals and Engineering Goods: These sectors may see a steady rise in demand due to improved market access.
Agriculture and Marine Products: The India–EU FTA agriculture impact includes better opportunities for marine exports like shrimp and fish, though standards compliance will remain important.
Services and Professional Opportunities
Beyond goods, the India–EU FTA services sector is a major highlight. India’s strength in IT, consulting, finance, healthcare, and education services finds better recognition under the agreement.
Improved professional mobility provisions could make it easier for Indian professionals to work on short-term assignments in EU countries. This is a major step for India’s service-driven economy and a key reason why the India–EU economic partnership is being seen as future-oriented.
What Does the Deal Mean for Indian Consumers?
For Indian consumers, the India–EU trade deal advantages and disadvantages need to be viewed together. On the positive side, products like European cars, machinery, wines, cheese, chocolates, and premium food items may gradually become more affordable.
However, the government has ensured that sensitive sectors are protected. Tariff reductions will be phased, giving domestic industries time to adjust and remain competitive. This balanced approach helps avoid sudden market shocks.
Strategic and Global Significance
The India–EU landmark trade deal goes beyond economics. At a time when protectionism is rising globally, this agreement sends a strong signal in favour of open and rules-based trade.
For India, the deal strengthens ties with a trusted partner and supports long-term growth. For the EU, it offers diversification in supply chains and a stronger presence in the Indo-Pacific region.
The agreement also aligns with shared goals on climate change, sustainability, and clean technologies, reinforcing cooperation beyond trade.
Challenges Ahead
Despite the positive outlook, the India–EU FTA pros and cons must be acknowledged. Compliance with strict European standards may be challenging for small exporters. Awareness, training, and government support will be crucial to ensure that MSMEs can fully benefit.
Effective implementation will determine the real success of the agreement. Clear communication, simplified procedures, and timely dispute resolution mechanisms will be essential.
A Defining Moment for India’s Trade Future
The India–EU Free Trade Agreement marks a defining moment in India’s trade journey. It reflects India’s growing confidence and readiness to engage deeply with global markets.
If implemented well, this India–EU trade pact can boost exports, attract investment, create jobs, and strengthen India’s economic standing worldwide. More importantly, it shows that India is prepared to shape global trade conversations, not just follow them.
In the years ahead, the true impact of this agreement will be measured not only in trade numbers but in how effectively it improves livelihoods and builds sustainable economic partnerships.
Industry information released on Monday showed that India’s urea purchases from other countries more than doubled to 7.17 million tonnes during the first eight months of the current financial year because the amount made in the government went down, which emphasises how much the nation depends on getting supplies from abroad to meet the needs of farmers.
According to information from the Fertiliser Association of India (FAI), urea purchases from other countries rose by 120.3 per cent to 7.17 MT between April and November 2024-25, compared to 3.26 MT during the same time last year.
The amount of urea made in the country went down by 3.7 per cent to 19.75 MT during that same time period. The information showed that, overall, urea sales went up by 2.3 per cent to 25.40 MT.
FAI Chairman S. Sankarasubramanian said in a statement that, although sales have increased through organized planning, the need to obtain supplies from other countries — especially for urea and DAP — highlights the importance of handling the supply chain strategically.
Just in November, urea purchases from other countries went up by 68.4 per cent to 1.31 MT, compared to 0.78 MT in November 2024. Urea sales went up by 4.8 per cent to 3.75 MT in November compared to the year before.
Di-ammonium phosphate (DAP), another important nutrient for soil, also saw an increased need to get it from other countries. DAP purchases from other countries now make up 67 per cent of the total supply, up from 56 per cent last year, even though sales remained steady at 7.12 MT between April and November of the 2025-26 financial year.
The amount of DAP made in the country went down by 5.2 per cent to 2.68 MT. The FAI said that the increase in purchases from other countries shows India’s plan to make sure there is always enough fertilizer available when crops need nutrients the most.
Complex NPK fertilizers showed strong growth, with the amount made going up by 13.8 per cent to 8.15 MT, and purchases from other countries almost doubled to 2.72 MT. Sales stayed at 10.38 MT between April and November of the current financial year.
Muriate of potash sales went up by 8.6% to 1.55 MT during the same time. In a positive sign for production in the country, single super phosphate (SSP) sales went up by 15 per cent to 4.16 MT, with the amount made going up by 9.5 per cent to 3.97 MT.
The FAI said that the SSP performance shows that farmers trust fertilizers made in the country and proves that the sector can provide phosphatic nutrients in the country at a good price and quality.
FAI Director General Dr Suresh Kumar Chaudhari said that there are two main takeaways from this information. He said that the first is the change towards managing supply by getting nitrogen and phosphate nutrients from other countries. The second is the strong performance of phosphatic fertilizers made in the country, like SSP, which have seen a 15 per cent increase in sales.
The central government subsidies urea, and prices have stayed the same at Rs 242 per 45 kg bag (not including neem coating costs and taxes) since November 1, 2012. Urea, which is considered a controlled item under the New Urea Policy, gets much higher subsidies compared to phosphatic fertilizers.
In a strategic bid to manage rising prices and ensure ample domestic supply, the Indian government has extended its duty-free import policy on yellow peas until March 31, 2026. The policy, originally introduced in late 2023 and renewed several times, is now set to continue into the next financial year following the latest order issued on May 30, 2025.
Yellow peas have quickly become a key element in India’s pulse imports, with India importing 2.9 million tonnes of the legume in 2024—an impressive 45% share of total pulse imports. This surge is notable given India did not import yellow peas at all in 2023. The country has sourced most of these imports from Canada and Russia, reflecting its reliance on the global pulse market to keep prices in check and supplies stable.
The nationwide policy has played a vital role in controlling food inflation, especially as overall pulse import volumes soared to an estimated 6.63 million tonnes in 2024, almost twice the 3.31 million tonnes brought in during 2023. This spike surpassed even the previous import record set in 2017.
The government’s move aligns with expectations of a stronger domestic harvest, supported by favorable rains and improved sowing across major producing states. Official estimates forecast tur output to reach 35.02 lakh metric tonnes, up 2.5% from last year. Kharif moong is projected at 13.83 lakh metric tonnes, a 20% increase over the previous year, while chana and masur production are also expected to rise.
By continuing duty-free yellow pea imports while boosting homegrown production, the government seeks to maintain price stability for pulses and safeguard food security for millions. These measures are especially crucial for meeting the country’s dietary needs as demand for pulses continues to rise.
The new India-US trade deal is expected to have mixed effects for Indian farmers and US companies, especially in the agriculture and dairy sectors.
Impact on Indian Farmers:
High Risks for Small Farmers: If India lowers tariffs on US dairy and agricultural products, millions of small Indian farmers could be at risk.
Even a small increase in US imports—just 5% market share—could displace 3–4 million marginal dairy farmers. The US has a significant productivity advantage, with much higher milk yields per cow than India.
Threat from Subsidized and GM Crops: US agriculture is heavily subsidized, and American companies are pushing for access for genetically modified (GM) crops like soybeans and maize. Experts warn that allowing
these imports could cause a crash in prices for Indian farmers, especially for the 24 million who grow soybeans and maize. This could further impoverish farmers, as domestic prices may fall below government-set minimum support prices.
Livelihoods at Stake: Over 700 million Indians depend on agriculture for their livelihood. Opening up the market to US agricultural products could lead to dumping of cheap, subsidized goods, threatening food
security and rural incomes.
Impact on US Companies:
Market Access and Competitiveness: US companies stand to gain significant new access to India’s vast market of 1.4 billion consumers. Lower tariffs would help American businesses compete more effectively,
especially in sectors like agriculture, dairy, automobiles, and industrial goods.
Potential for Growth: The US is particularly interested in exporting more farm products such as maize, soybeans, cotton, and dairy to India, which could help reduce the US trade deficit with India.
Regulatory Barriers Remain: While tariff reductions are helpful, US companies still face challenges from India’s non-tariff barriers and strict quality control regulations, which can limit the actual impact of
the deal.
Summary Table:
Group
Potential Benefits
Key Risks/Challenges
Indian Farmers
Avoidance of steep US tariffs on exports
Loss of income, price crashes, competition from subsidized/GM US imports, threat to small/marginal farmers
Indian non-tariff barriers, regulatory hurdles, limited scope if India protects sensitive sectors
Overall :
The deal’s main immediate benefit for India is avoiding a steep 26% US tariff on its exports, which would help Indian exporters remain competitive. However, unless India maintains protections for its agriculture and dairy sectors, the
livelihoods of millions of small farmers could be at risk. For US companies, the deal could open up new opportunities in India, but success will depend on how much India is willing to open its markets and relax regulatory barriers.
