Tariff Barrier or opportunity ?????

Export Tariffs – A Barrier or an Opportunity?

Export tariffs, though less discussed than import duties, play a critical role in shaping agricultural trade. While they are typically used to control domestic supply and inflation, they can impact the global competitiveness of Indian agricultural products.

When the government imposes an export tariff on a product, it raises the overall cost for foreign buyers, often making Indian goods less attractive compared to alternatives. This policy is sometimes used during shortages to ensure local availability, as seen with wheat and onions in the past.

However, export tariffs can also present opportunities. When other countries impose high export tariffs on similar products, Indian exporters can step in and fill the supply gap at competitive rates. This creates an opening to build new trade relationships and gain market share.

To navigate export tariffs successfully, businesses must stay informed through government notifications, regularly check DGFT updates, and analyze seasonal trends in domestic pricing. Consulting with trade analysts and customs experts can help mitigate tariff-related risks.

Long-term strategy should include product diversification, value addition, and focusing on tariff-exempt markets through FTAs. Building resilience against sudden policy shifts ensures stable export revenue.