What Happened
- The APEDA Chairman stated that India is poised for a significant uptake in agricultural exports to the United States following the India-US interim trade deal, which sets a competitive 18% tariff rate on Indian goods
- Speaking at BIOFACH 2026 in Nuremberg, Germany, the Chairman highlighted India's record 30% growth in organic product exports to the US in the previous year despite global challenges
- India was named "Country of the Year" at BIOFACH 2026, the world's leading organic food exhibition, with the largest-ever Indian presence -- a 1,074 sq. m. pavilion hosting 67 co-exhibitors including organic exporters and farmer-producer organizations
- The 18% duty rate under the interim deal is substantially lower than what is offered to other US trading partners, giving Indian agricultural exporters a decisive competitive advantage
Static Topic Bridges
APEDA -- Agricultural and Processed Food Products Export Development Authority
APEDA is a statutory body established under the Agricultural and Processed Food Products Export Development Authority Act, 1985 (Act 2 of 1986), which came into effect on 13 February 1986. It replaced the earlier Processed Food Export Promotion Council (PFEPC) and functions under the Ministry of Commerce and Industry.
- Established under: APEDA Act, 1985 (came into force 13 February 1986)
- Functions: Promotion of export-oriented production of scheduled products; registration of exporters; setting quality standards and specifications; financial assistance and subsidies; collection and publication of trade statistics
- Scheduled products include: fruits, vegetables, meat products, dairy products, confectionery, biscuits, cocoa, alcoholic and non-alcoholic beverages, cereals, groundnuts, peanuts, and their value-added products
- APEDA also functions as the Secretariat for the National Programme for Organic Production (NPOP), overseeing organic certification through 28 accredited certification bodies
Connection to this news: The APEDA Chairman's statement at BIOFACH 2026 reflects the institution's role in promoting India's agricultural exports. The trade deal's preferential 18% tariff creates an opportunity that APEDA is well-positioned to facilitate through its exporter registration, quality standardization, and export promotion functions.
National Programme for Organic Production (NPOP)
NPOP is India's primary regulatory framework for organic agriculture certification, administered by APEDA under the Ministry of Commerce and Industry. It defines standards for organic production, establishes an accreditation system for certifying agencies, and provides the certification framework recognized internationally.
- Operated through 28 accredited certification bodies across India
- India ranks 1st globally in number of organic producers and 6th in organic agricultural land
- Over 4.45 million hectares under organic certification: 1.44 million hectares under cultivation and 3.0 million hectares under wild harvest collection
- Annual certified organic production: approximately 2.9 million metric tonnes (2022-23)
- Organic food export volume (2022-23): 312,800 metric tonnes worth approximately INR 5,525 crore
- Major producing states: Madhya Pradesh (largest), Maharashtra, Rajasthan, Karnataka, Odisha
- The global organic food market is estimated at approximately USD 150 billion; India is the largest supplier of organic food to Europe
Connection to this news: India's recognition as Country of the Year at BIOFACH 2026 and the 30% export growth in organic products are direct outcomes of the NPOP framework. The trade deal's 18% tariff rate opens a significant channel for organic products certified under NPOP to access the US market competitively.
India-US Interim Trade Agreement (February 2026)
The India-US interim trade agreement, announced on 2 February 2026, is a framework for reciprocal and mutually beneficial trade. It is the first bilateral trade agreement between India and the US, building on the earlier Trade and Investment Framework Agreement (TIFA). The deal reduces US reciprocal tariffs on Indian goods from 50% (which had been imposed through successive tariff escalations over 10 months) to 18%.
- US tariff on Indian goods reduced from 50% to 18% (effective immediately via executive order)
- India to eliminate or reduce tariffs on all US industrial goods and a wide range of agricultural products (DDGs, red sorghum, tree nuts, fruits, soybean oil, wine and spirits)
- India committed to purchasing USD 500 billion in US products over 5 years (energy, aircraft, technology, coking coal, precious metals)
- Subject to successful conclusion, the US will further remove reciprocal tariffs on generic pharmaceuticals, gems and diamonds, and aircraft parts
- India-US bilateral trade in FY 2024-25 stood at a record USD 132.2 billion; India's trade surplus was USD 41.18 billion
- The deal framework feeds into a broader Bilateral Trade Agreement (BTA) with a target of USD 500 billion bilateral trade by 2030
Connection to this news: The 18% tariff rate specifically benefits agricultural exporters by providing a lower duty than what competing nations face. The APEDA Chairman's optimism is grounded in this structural advantage, combined with India's already demonstrated 30% growth trajectory in organic exports.
Key Facts & Data
- APEDA established under: Act 2 of 1986 (APEDA Act, 1985), effective 13 February 1986
- India organic certification area: 4.45 million hectares (1.44 million cultivated + 3.0 million wild harvest)
- India's global organic ranking: 1st in number of producers, 6th in organic agricultural land
- Organic food exports (2022-23): 312,800 MT, worth INR 5,525 crore
- US tariff on Indian goods under interim deal: 18% (down from 50%)
- India-US bilateral trade FY 2024-25: USD 132.2 billion (India's exports: USD 86.51 billion)
- India's trade surplus with the US in FY 2024-25: USD 41.18 billion
- BIOFACH 2026: Held in Nuremberg, Germany (10-13 February); India named Country of the Year
- Indian pavilion at BIOFACH: 1,074 sq. m., 67 co-exhibitors