Coffee exporters have perked up, tea shippers hope to cash in on the low duty advantage, spices shippers smell good times, while seafood exporters hope for a big catch as the impact of the India-US trade deal sinks in among agriculture and allied sectors.
Alongside this optimism, fears are also being raised in certain sectors over the trade deal. Apple growers are worried their returns will be affected, while traders say corn and soybean prices may be impacted by the import of Dried Distillers Grains with Solubles (DDGS), though many see only a limited impact of the lower of soybean oil tariff.
The US has granted duty-free access to Indian coffee. Though the US is only the tenth largest buyer of Indian coffee, the deal could be a positive for India. Shipments of speciality coffees are likely to rebound while instant coffees could make further inroads into the US market with the duty reduced to zero from 25 per cent.
