New Delhi: India wants the US to open up more of its lucrative market for Indian fruit and vegetables by lowering its stringent health and safety standards, two people aware of the matter said, as officials from the two countries continued discussing a proposed trade deal.
These restrictions, part of what are called sanitary and phytosanitary regulations, have been responsible for the US customs authorities rejecting shipments from India. They tend to vary vastly from country to country.
India has sought greater market access for its mangoes, pomegranate, litchi, grapes, pineapple, guava, jackfruit, drumstick, green chilli, carrots, bottle gourd and ridge gourd, they said.
Despite high demand for these items. particularly among the Indian diaspora in the US, they continue to face regulatory hurdles stemming from pest-risk concerns and strict inspection protocols.
With the two teams finalizing the first tranche of a long-awaited Bilateral Trade Agreement (BTA), the issue has gained urgency after a shipment of 25 tonnes of Indian mangoes, spread across 15 consignments, was rejected and destroyed in the US, causing a loss of about $500,000 to exporters.
India’s agricultural exports to the US were worth $2.53 billion in FY25, led by spices, cereal preparations, rice, fruit, vegetables, meat, dairy, and poultry products.
Queries emailed to the spokespersons of commerce minister and USTR remained unanswered till press time.
As per the commerce ministry data, India’s exports of fruit and vegetables to the US stood at $259.82 million in FY23, rose to $297.73 million in FY24, and further increased to $331.47 million in FY25—marking an overall growth of nearly 27.5% over two years.
During the same period, India’s total exports of fruit and vegetables to all regions rose from $3.20 billion in FY23 to $3.65 billion in FY24 and $3.86 billion in FY25, reflecting a growth of over 20%.
Despite the relatively small base, the US share in India’s total horticulture exports has shown consistent improvement—from 8.12% in FY23 to 8.16% in FY24 and 8.59% in FY25—signaling a slow but steady rise in access to the US market, which exporters hope will further strengthen under the proposed trade pact.
A high-level team of Indian negotiators, led by commerce minister Piyush Goyal, returned home late on Sunday.
As per commerce ministry data, India’s agriculture, meat and processed food items face a duty of 5.29% in the US, while similar American goods face a tariff of 37.66% in India.
“Given their perishable nature, India has asked the US side to expedite the phytosanitary approval process and consider establishing certification and irradiation agencies within India to accelerate pre-clearance and shipment timelines. Indian negotiators argue that these measures would help reduce spoilage and make Indian horticultural produce more competitive in the US market,” said the first among the two people mentioned above.
Strict US standards a major barrier
Shipments of mangoes and pomegranates to the US are limited to certain varieties and regions and must undergo mandatory irradiation supervised by the US Litchi exports have been almost non-existent because of concerns about fruit fly infestations and the absence of an agreed treatment.
“The new BTA framework is expected to address these bottlenecks more systematically, allowing India to benefit from simplified compliance regimes for low-risk items,” said the second person.
Both countries have expressed optimism about the BTA delivering early gains. For India, the inclusion of horticultural products is seen as a test case for whether non-tariff barriers can be meaningfully addressed under the agreement.
Indian negotiators are hoping for reciprocity in US approvals following India’s clearance of several American agricultural products in recent years, including Washington apples and Californian almonds, this person said.
As per a Global Trade Research Initiative’s (GTRI) report, if both sides reach a consensus to lower tariffs and boost goods exports, India stands to benefit in the exports of fish, meat, and processed seafood, which currently accounts for $2.58 billion in exports and faces a 27.83% tariff differential.
Cereals, vegetables, fruits, and spices, valued at $1.91 billion, face a 5.72% tariff differential, impacting rice and spice shipments. Dairy products, worth $181.49 million, are significantly impacted by a 38.23% tariff differential, making ghee, butter, and milk powder costlier and reducing their market share, it said.
“We expect that the talks will move in the right direction, particularly considering the challenges and opportunities for Indian horticulture exports,” said Ekram Husain, chief executive officer of Essar Exports and vice president of the VAFA Fresh Vegetable and Fruits Exporters Association (Maharashtra).
“The United States is a high-value market for Indian produce, especially fruits like mangoes, grapes, and pomegranates, as well as vegetables. With the right tariff concessions and alignment of quality standards under the trade agreement, we are confident this will significantly boost our exports to the US. We’re banking on this agreement to open new channels and make Indian produce more competitive globally,” Husain added.
Another exporter, Nadeem Siddiqui, who owns Amroha-based Shahnaz Export, also pins his hopes on the ongoing trade talks with the US. “We have the required infrastructure for exports. I believe that India’s push for horticulture produce in the talks will open up new avenues for Indian exporters,” said Siddiqui, a mango exporter.
However, industry experts say that in the competitive world of fruit exports, even minor documentation errors can lead to significant losses. Dibyanshu Tripathi, Co-founder and CEO of Hexalog, pointed out that about 15 mango shipments from India were recently destroyed at US ports including Los Angeles, San Francisco, and Atlanta, resulting in a significant loss.
Tripathi noted that India’s cold storage infrastructure covers only 10% of its horticultural output, leading to post-harvest losses between 6% and 18%. “Fuel accounts for 45% of cold chain operating costs—much higher than in Western countries—and limited air cargo from key production regions further delays the export of perishables,” he said.
According to him, exporters are also under pressure from unpredictable trade policies, including the loss of GSP (Generalized System of Preferences) benefits and increasingly stringent US import standards. “However, initiatives such as the Agricultural & Processed Food Products Export Development Authority (APEDA’s) EU-compliant packhouses, cold-chain expansion by the National Centre for Cold Chain Development (NCCD), and ongoing trade talks with the US show that India is moving in the right direction to tap into the global fresh produce market,” Tripathi added.
The GSP is a programme under which developed countries—notably the US —provide duty-free access to certain products exported by developing countries.