Commerce Minister Piyush Goyal says no farm or dairy interest has been given up in the US trade deal. Wheat, rice, milk and meat stay outside duty cuts. But the deal is not signed yet.
Updated: 30 October 2026, 10:00 AM IST
Quick Read:
- Goyal said on October 29 that “not a single sensitive interest of farmers” has been compromised in the US trade talks.
- Wheat, rice, maize, soya, milk, cheese, poultry and meat get no duty cuts under the interim framework.
- The first tranche of the deal is finalised in talks but is still in legal drafting. It is not signed and in force yet.
Commerce Minister Piyush Goyal has a clear message for farmers. He said on October 29 that the India-US trade deal gives up nothing that matters to them.
“Not a single sensitive interest of farmers or any other stakeholder has been compromised,” Goyal said. He added that once the details are out, the deal “will be celebrated by India”.
Here is the part many readers miss. The deal is not signed yet. Goyal said on October 15 that the first tranche of the India-US bilateral trade agreement has been finalised in talks and is going through legal drafting. He said he hopes to finalise it soon and put it into force once India gets a competitive advantage over peer countries.
So today’s story is about what India has protected in the talks so far. It is not a signed deal. The final legal text still has to come out.
What Goyal said
Goyal spoke on October 29 with growing confidence about the talks. He said India will stand at a strong comparative advantage once the US trade deal is done.
He also spoke directly to farmers who worry about cheap American farm goods flooding Indian markets. “I’m happy to meet any farm delegations or any persons who may have any misgivings on this. I have an open-door policy on this,” he said in an interview.
His line on what India opened up is worth reading in full. “What we’ve opened is items where we have shortage, again calibrated opening. And I see absolutely no harm to our farmers,” he said.
In plain words: India opened a few items where it does not grow enough. It did not open the crops that feed farm families.
What “sensitive sectors” means in plain words
A “sensitive sector” is a part of farming where a small change in price can hurt lakhs of families. Think of a small farmer in Punjab who grows wheat, or a dairy farmer in Gujarat who sells milk every morning.
If the US could send cheap wheat, milk powder or chicken into India with no import tax, local prices could fall. The small farmer would earn less. That is why India calls these products sensitive.
Trade talks work like this. Each side cuts import tax, called duty, on some goods. A duty cut on wheat would make American wheat cheaper in India. No duty cut means American wheat still faces the same tax wall. That wall is what protects the local farmer.
What is protected, and what is opened
Goyal’s social media post listed the protected items in full. No duty concessions will be given on maize, wheat, rice, soya, poultry, milk, cheese, ethanol (fuel), tobacco, certain vegetables and meat. Millets, ragi, butter, yoghurt and genetically modified foods are also kept out, as are soymeal and cereals.
Apples got a special shield. US apples will face a minimum import price of Rs 80 per kg plus a 25% import duty. Goyal said, “Our apple farmers are fully protected, and there is no need to worry.” India imports around six lakh tonnes of apples a year from many countries, including the US.
On the other side, India will cut or remove duties on a defined list of American farm items. These include dried distillers’ grains, red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits. Under the interim framework, the US will cut tariffs on Indian goods to 18% from 50%.
That 18% figure is the prize for Indian exporters. It would make Indian goods cheaper in American shops than they are today. But it only starts when the deal is signed and put into force.
What farmers and exporters should watch
First, watch for the legal text. Goyal’s assurances are about the talks so far. The fine print will show exactly which items got duty cuts and which did not.
Second, watch the dates. No start date for the deal has been announced yet. Exporters should not price new US orders on the 18% tariff until the deal is in force.
Third, watch the apple rule in practice. A minimum import price only works if customs checks it at the border. Apple growers in Himachal Pradesh and Kashmir should watch early import data once the deal starts.
Fourth, watch for farm delegation meetings. Goyal has kept his door open to farmers with doubts. Groups that want clarity can ask for a meeting rather than rely on rumours.
The bottom line is simple. India says it protected the farm items that matter most to small farmers. The deal itself still needs its final legal form, a signature, and a start date.
FAQ
Q: Is the India-US trade deal signed?
A: No. The first tranche is finalised in talks and is in legal drafting, Goyal said on October 15. It still needs to be finalised and put into force.
Q: Which farm products are protected?
A: Wheat, rice, maize, soya, millets, milk, cheese, butter, yoghurt, poultry, meat, ethanol, tobacco and certain vegetables get no duty cuts. US apples face a Rs 80 per kg minimum price plus 25% duty.
Q: What do Indian exporters gain?
A: Under the interim framework, the US will cut tariffs on Indian goods to 18% from 50%. That gain starts only when the deal is in force.
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