'Need Lower Tariffs, Harmonisation of Norms to Boost Indo-US Agri Trade'

New Delhi, September 24, 2024: As the India-US bilateral relations grow with the consistent growth in trade between the two countries, there is a need for lower tariffs and harmonization of local norms in order to boost agriculture trade between two of the major global economies, said industry leaders at the at the 21st Indo-US Economic Summit organized by the Indo-American Chamber of Commerce (IACC).

Addressing the programme, Mr. Sanjeev Bisht, Vice President – Value Added Products, Agri Business Division, ITC Ltd noted that the recent supply chain disruptions due to the Red Sea crisis, the absence of a free trade agreement (FTA) between the two countries and local quality norms are among the key concern areas in the bilateral agriculture trade space.

"Quality norms is a critical part. If we want to increase exports, we need understand the quality concerns of that country, how the norms can be worked out in terms of harmonization of standards in India. Our export is only 10-20%, domestic consumption is 80%. How the standards become common that needs to be work upon," he said.

Noting that policy framework is a key aspect, Mr Bisht said that sustainability and technology are important aspects that need to be emphasised upon to increase productivity with reduction in ecological impact.

"We have lot of innovation happening in AI. If we can combine them together, there is scope," he said. In a presentation during the session on agriculture and food processing, Mr. Bisht noted that resilient seed varieties an AI-based weather and climate prediction systems are required along with lowering of tariffs.

Mr. Chirag Jain, Partner, Grant Thornton Bharat pointed out that the US comprises of 10% of India's agriculture exports, supplies of India only account for 2.6% of the farm imports taken up by the US, leaving enough potential for India to boost its exports to the world's largest economy.

In a bid to boost ties in the agriculture space, Mr. Jain recommended ease in technology transfer, implementation of successful research & development models (R&D), capacity building in climate-smart agriculture, enhancement of trade for fresh produce and greater private sector participation among others.

"India offers a growing market for US exports while US innovations can help India improve its agricultural productivity," he said. Talking on the issue of tariffs, Mr. Jain further said that both the countries need to develop tariff models to avoid global supply chain disruptions and benefitting farmers from both countries.

He also called for continued engagement between the two countries at trade forums, strategic trade dialogues and World Trade Organization.

The other speakers in the session themed 'Vision for the Future of Indo-US Economic Relations in Agro & Food Processing' included Mr. Jasmohan Singh, Chairman, Agro & Food Processing Comm. IACC & Managing Director, Frick India Ltd and Mr. RavinkumarSivalingam, Sustainable Agriculture Strategy, Digital Food Initiatives Tata Consultancy Services.