Trade Talks
US Congress asks India trade deal negotiators for better market access of farm pdts
This story was originally published at 13:50 IST on 5 June 2025
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NEW DELHI – Members of the US Congress have written to the US Trade Representative's Office, urging it to secure improved market access for American agricultural exports in ongoing trade negotiations with India. The letter, sent last week, urged the US administration to push for reducing or removing tariff barriers and non-tariff trade barriers that currently hinder US farm exports of ethanol, distillers' dried grains with solubles, and soybean meal.
"India has publicly expressed its willingness to proceed in high-volume agricultural trade negotiations with the US, increasing demand for American farmers," the letter said. The US farmers can benefit from exporting to India distillers' dried grains with solubles and soybean meal, which comply with the country's strict import restrictions on genetically modified products, it added.
The letter highlighted that India could become the second-largest export market for US distillers' dried grains with solubles, with potential annual demand of up to 2 million tonnes—valued at around $500 million. Ethanol exports can also gain as India is already the third-largest market for US ethanol. Removing current trade barriers could boost ethanol shipments by an additional $400 million per year from the existing $393 million, it added.
On soybean meal, the letter said US exporters face a steep tariff disadvantage compared to competitors. To address this, the letter recommended the reduction or elimination of import duties and the establishment of a permanent tariff rate quota for US-origin soybean meal.
Currently, India permits ethanol imports only for industrial use. Expanding access to the fuel blending and sustainable aviation fuel segments could unlock significant additional demand, the letter added. End
US$1 = INR 85.72
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Afra Abubacker
Edited by Tanima Banerjee
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