The Indian government is actively exploring alternative export markets and import substitution strategies to shield farmers from the impact of a 50% US tariff on Indian goods, effective August 27, 2025, said D.K. Yadava, Deputy Director General (Crop Science) at the Indian Council of Agricultural Research (ICAR).
Speaking at a media briefing during the ‘Dialogue Next’ event hosted by the US-based World Food Prize Foundation in India, Yadava emphasized protecting farmers’ livelihoods amid the US trade restrictions. The Trump administration’s tariffs, driven by India’s Russian oil imports, threaten $48.2 billion in Indian exports, including agricultural products like basmati rice ($304.78 million in 2023-24), guar gum ($106 million), and shrimp, which holds a 40% US market share.
To counter this, the government is identifying new markets in Latin America, Africa, and Southeast Asia, while prioritizing self-reliance in key imports like genetically modified (GM) soybean, maize, and dairy. Yadava noted a “clear stand” against importing GM crops and US dairy, citing food security and cultural sensitivities.
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Efforts are underway to boost domestic production, ensuring farmers get fair prices without reliance on US markets. “The Prime Minister and our Minister prioritize farmers’ interests above all,” Yadava said, highlighting ongoing discussions to achieve self-sufficiency in critical commodities. The government is also considering financial incentives, like favorable loan rates, to support exporters. With 45% of India’s population dependent on agriculture, these measures aim to protect rural livelihoods from global trade disruptions.
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