What Happened
- The White House released a fact sheet on February 9, 2026, detailing the India-US interim trade agreement, explicitly mentioning "certain pulses" among agricultural products that will see tariff reductions.
- The mention of pulses is significant because this category was absent from the original joint statement announced on February 6 during the Trump-Modi call.
- The fact sheet lists tariff cuts on dried distillers' grains (DDGs), red sorghum, tree nuts, fresh and processed fruit, certain pulses, soybean oil, wine and spirits, and additional products.
- Union Commerce Minister Piyush Goyal acknowledged "lentils" among items that will see tariff cuts, stating that India has been importing them from the US for years.
- Union Agriculture Minister Shivraj Singh Chouhan separately listed several products including pulses, wheat, rice, corn, millets, potato, and onion that "will not come to India" under the deal.
Static Topic Bridges
India's Pulses Economy and Import Dependence
India is the world's largest producer, consumer, and importer of pulses. Despite producing approximately 23-27 million tonnes annually, India faces a persistent demand-supply gap of 3-4 million tonnes, making imports structurally necessary. The principal pulses grown domestically include tur (arhar/pigeon pea), chana (chickpea/Bengal gram), urad (black gram), moong (green gram), and masoor (lentils).
- India accounts for about 25% of global pulses production and about 27% of global consumption
- Key import sources: Canada (yellow peas, lentils), Myanmar (tur, urad), Australia (lentils, chickpeas), Mozambique and Tanzania (tur)
- Import policy for pulses has oscillated between free imports and restrictions — tur and urad imports are currently duty-free until March 31, 2026
- The National Food Security Mission (NFSM) targets increasing pulses production through area expansion and productivity improvement
- Pulses were brought under the purview of the Essential Commodities Act, 1955, with stock limits imposed periodically to curb hoarding
Connection to this news: The inclusion of "certain pulses" in the US fact sheet raises questions about which specific varieties will see tariff cuts and whether this could affect domestic pulse prices, given India's existing import dependency and the sensitivity of pulses in food inflation.
Tariff Structure and Trade Policy Instruments
India uses a tiered tariff structure comprising Basic Customs Duty (BCD), Social Welfare Surcharge, Agriculture Infrastructure and Development Cess (AIDC), and Integrated GST on imports. Trade policy is governed by the Foreign Trade (Development and Regulation) Act, 1992, with the DGFT (Directorate General of Foreign Trade) regulating import-export policy through ITC-HS classifications.
- India's simple average MFN (Most Favoured Nation) applied tariff rate is approximately 17-18% overall, but significantly higher for agricultural products (average ~37%)
- WTO bound rates for agricultural products are generally much higher than applied rates (e.g., 100% for wheat, 80% for rice, 100% for soybean oil)
- India uses tariff rate quotas (TRQs) for certain products like milk powder and maize
- Non-tariff barriers include SPS (Sanitary and Phytosanitary) measures, technical standards, fumigation requirements, and import licensing
- The Applied tariff on soybean oil is currently 27.5% (BCD); lentils attract 10% BCD
Connection to this news: The interim deal involves India reducing applied tariffs on specific US agricultural products, which operates within the policy space between India's bound and applied rates. The specific tariff concessions on pulses and oilseeds are particularly sensitive given their impact on smallholder farmers.
Bilateral Trade Agreement (BTA) vs Free Trade Agreement (FTA)
The India-US interim deal is framed as a step toward a comprehensive Bilateral Trade Agreement (BTA), distinct from a traditional Free Trade Agreement (FTA). While FTAs typically involve reciprocal tariff elimination on substantially all trade (as per GATT Article XXIV, generally interpreted as covering at least 85-90% of bilateral trade), interim or "early harvest" agreements can cover selective products and sectors.
- India has comprehensive trade agreements with 14 partners, including ASEAN (2010), Japan CEPA (2011), South Korea CEPA (2010), UAE CEPA (2022), and Australia ECTA (2022)
- India-US bilateral trade stood at approximately $190 billion in 2024-25, with India running a trade surplus
- The US was India's largest trading partner by country in 2024-25
- Previous India-US trade talks under the Trade Policy Forum (TPF) did not result in a comprehensive deal
- The current interim framework includes non-tariff provisions on medical devices, communications equipment, and food safety standards
Connection to this news: The fact sheet reveals the specific scope of India's tariff concessions in the interim deal, which will serve as the foundation for broader BTA negotiations. The divergence between the joint statement and the White House fact sheet on pulses highlights the sensitivity of agricultural trade in these negotiations.
Key Facts & Data
- India's total pulses import bill: $5.48 billion in FY 2024-25 (up 46% from $3.75 billion in FY 2023-24)
- US share: only $89.65 million of the $5.48 billion total
- Top pulse imports by value (FY 2024-25): pigeon peas ($1,285 million), Bengal gram ($1,117 million), yellow peas ($961 million), lentils ($916 million)
- Lentil imports from US: $78 million (3rd after Canada at $466 million and Australia at $328 million)
- Current tariff on lentils: 10% BCD; yellow peas: 30% (from November 2025); tur and urad: duty-free until March 2026
- US tariff on Indian goods under the deal: reduced from 50% to 18%
- India's strategic purchasing commitment: $500 billion in US products over 5 years