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Analyst says India trade talks could increase U.S. ag exports

A senior market advisor with Total Farm Marketing says this week’s meeting between the U.S. and India could expand export demand for several U.S. ag commodities.

Naomi Blohm says India’s growing population is creating a need for more protein.

“We’re keeping an eye on soybeans and soy products,” she says. “India has said recently that they’re going to need to import some soybean meal. They are our third largest customer of ethanol. They’re also expected to be importing cotton and the other commodity we have to watch is rice.”

She tells Brownfield tighter domestic supplies could position India to become a larger customer.

“They’re in a real hot and dry spell,” she says. “That is expected to continue in the coming months. If that hurts the production of any of their agricultural products, it sets up the United States to export more to them.”

Blohm says the two countries are also expected to address non-tariff trade barriers during this week’s meeting.

The United States and India are meeting in New Dehli to finalize the stages of a bilateral trade agreement through Thursday.

AUDIO: Naomi Blohm, Total Farm Marketing