Imported Almonds, Walnuts, Fruit And Soybean Oil May Cost Less As Tariffs Fall

India and the United States have moved closer to finalising an interim trade agreement that is expected to make several imported food items cheaper for Indian consumers, while continuing to protect sensitive domestic agricultural sectors. The deal, announced after high-level negotiations between the two countries, focuses on selective tariff reductions rather than broad-based market opening.

Under the proposed framework, import duties on certain U.S. agricultural and food products will be lowered, leading to price relief in specific segments. Tree nuts such as almonds, walnuts and pistachios, which are widely consumed in India but remain expensive due to high tariffs, are among the key items likely to become more affordable once the revised duty structure comes into effect.

The agreement also includes tariff concessions on soybean oil, a major component of India’s edible oil imports. Any reduction in duties on soybean oil is expected to help stabilise domestic edible oil prices, a politically and economically sensitive issue given India’s dependence on imports to meet consumption demand. In addition, animal feed inputs such as dried distillers’ grains (DDGs) and red sorghum are expected to see lower import costs, which could indirectly benefit the poultry and livestock sectors.

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Certain fresh and processed fruits from the United States, along with wine and distilled spirits, are also covered under the tariff reduction plan. These categories cater largely to urban and premium markets, and lower duties could improve availability and moderate retail prices in Indian cities.

At the same time, the government has made it clear that core staples and sensitive sectors remain fully protected. Dairy products, staple grains such as wheat and rice, poultry, meat, and most fruits and vegetables produced domestically are excluded from any tariff cuts. Officials have stressed that farmer interests and food security concerns remain non-negotiable.

The selective nature of the concessions reflects India’s broader trade strategy of balancing consumer benefits with domestic protection. While the deal is expected to expand bilateral trade and improve market access for U.S. exporters, its immediate impact in India will be limited to specific food categories rather than across-the-board price reductions.

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