August 23, 2025

A spicy twist in the India-US trade drama has Indian buyers hitting the pause button on importing US agricultural products, especially pulses and lentils. Why? They fear a retaliatory tariff strike from the Narendra Modi government against Washington’s recent punishing duties. According to a big multinational firm insider, who requested anonymity, “Indian importers have signed fresh contracts, but they have put on hold all loadings until the end of August. They fear New Delhi might come up with retaliatory tariffs.” The timing is tricky! US bean and lentil crops are freshly harvested, ready to be shipped. The US exports green lentils (a stand-in for India’s beloved pigeon peas or tur), yellow peas, and chickpeas to India. Tamil Nadu (TN) is a major importer, distributing about 44,000 tonnes of US green lentils through ration shops last year. Some of these lentils even end up in interior parts of south India. “Take Thoothukudi, for example,” says the source. “A buyer there bought 10,000 tonnes of green lentils but is not allowing the loading onto ships. This stall might apply to other products too.” Some trading companies are ready to export, tied down by contracts and payments to farmers, but they wait anxiously for a green signal. US farmers have added worries. While India pauses, China is keeping its distance too. “Even corn, China’s purchase has bought only very little,” shares an official from a global inspection agency. It looks like China won’t make new forward deals on US corn, expected to be harvested in October. Why such fear from India? US President Donald Trump recently announced a tough 25 percent extra duty from August 27 on crude oil from Russia. Also, the US slapped a 25 percent tariff on Indian products starting August 7, blaming India for imposing high customs duties on US goods. Shipping isn’t quick either – it can take six weeks for US farm shipments to reach India. Buyers don’t want to get stuck with cargo at sea if India hits back with tariffs mid-way. Trade talks have cooled. Trump said no talks until India stops buying Russian crude oil. Still, India remains a mighty buyer. 2024 US Department of Agriculture stats show India as the sixth-biggest export market for US agricultural products, buying tree nuts, ethanol, cotton, pulses, and fresh fruits worth $2.27 billion. There is some welcome news! India recently made cotton imports duty-free until September 30, brightening prospects for US cotton growers. Union Minister Ramnath Thakur told Parliament on July 29 that US cotton imports jumped from 2.69 lakh bales worth ₹1,361 crore in 2023-24 to 5.26 lakh bales worth ₹1,802 crore this season till May. In the sizzling trade saga between India and the US, pulses and lentils remain caught in the heat of tariffs and politics. Will the trade win-win spirit return soon? The world watches with bated breath.

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Tags: India-us trade, Agricultural exports, Pulses and lentils, Tariffs, Cotton imports, Usda data,