Will lower US Tariffs boost India’s spices, tea and coffee sales?

Indian spices, tea and coffee now get a price lift in the US as duties on over 250 food items fall to standard MFN rates from earlier 25–50 percent, so shelf prices can ease and volumes can rise. Indian spice exports to the US were above 500 million dollars in 2024, while tea and coffee were around 83 million dollars, so the base is meaningful for quick gains. Processed foods worth 491 million dollars, such as coffee and tea extracts, cocoa preparations, fruit pulps and mango products, are among the biggest beneficiaries.

The exemption window covers close to 1 billion dollars of India’s agricultural exports to the US, and key winners include black pepper, cumin, cardamom, turmeric, ginger, specialty teas, coffee extracts, mango derivatives and cashews. Tariff parity helps Indian brands move from bulk to value added lines, improve packaging and win space in mainstream chains and e commerce. But competition from Vietnam and Indonesia stays strong, so consistency in quality and reliable sourcing remain vital to defend margins.

Supermarkets and cafés can plan sharper promos, expand private labels and sign multi season contracts, so consumers see lower prices and more variety while suppliers get steady offtake. Distributors can push sampler packs, regional masala blends and ready to drink tea or coffee, and this can lift basket size across diaspora and mainstream shoppers. Equity investors may price in margin gains for listed spice and tea firms and higher throughput for logistics and packaging companies tied to these product flows.