Farmers and exporters in Nashik district are worried after US President Donald Trump announced a sharp increase in import duties on agricultural products. The move is already affecting market trends, especially for onion and grape producers, who are major exporters to the United States.
The US government has raised import duties on Indian agricultural products from the earlier 5.3% to 26%, and an additional 10% duty will be added from April 5, 2025. There is also speculation that the duty might go up to 100%, creating uncertainty for Indian exporters.
Nashik is one of the largest producers of onions and grapes in India, and a significant portion of this produce is exported to the US. Other fruits like raisins and mangoes—especially from the Konkan region—are also sent to the US after being treated at the Farmers' Radiation Center in Lasalgaon. Now, farmers fear that the higher import taxes will make Indian produce less competitive in the American market.
The US is India’s biggest agricultural export market. In 2024 alone, India exported agricultural products worth $5 billion to the US, including rice, shrimp, honey, plant extracts, castor oil, and black pepper. A major shift in import policy is expected to impact not just farmers in Nashik, but also exporters across India.
While India imposes an average 37.7% duty on American agricultural imports, the US had a much lower rate for Indian goods—until now. The sudden rise in import duties is being viewed as a political and economic move during Trump’s second term, and the uncertainty has hit confidence in agricultural export markets.
Although the Indian government recently reduced export duty on onions by 20%, onion prices have started rising over the last two days, likely due to market instability and confusion about how the US changes will impact demand.
Farmers are now urging the central government to take steps to protect their interests and provide clarity on future trade policies with the US. With the export market facing turbulence, the agriculture sector is watching the developments closely.