Indian negotiators have extended their stay in Washington DC as the deadline to reach a deal with the United States is fast approaching.

The reprieve from US President Donald Trump's 'reciprocal tariffs' is ending on July 9. Countries across the world, including India, are in a scramble to reach a deal, or at least a mini deal, to avoid facing high tariffs — 26 per cent in India's case.

Even as Trump has indicated that a "very big" deal with India is near , the two sides appear to have hit a logjam over contentious sectors like agriculture and dairy. While Trump wants India to open its market to American genetically modified (GM) crops and dairy products, India is unwilling to do as GM food crops are not allowed in India and American dairy industry uses animal feed for cattle — such cattle's product would not be culturally acceptable to many Indians.

Trump has indicated that he would not extend the reprieve beyond July 9 and would either reinstate tariffs or set new ones.

Trump's stance on agriculture, dairy sectors key roadblock

The Trump administration has been pushing India to open its markets to American dairy and GM crops , apples, and nuts, according to Deccan Chronicle.

Agriculture and dairy are politically sensitive sectors in India and any deal deemed unfavourable could lead to blowback.

Moreover, India wants an assurance that once a deal is reached, all US tariffs, including the baseline tariff of 10 per cent, would be removed and 50 per cent duty on steel and 25 per cent on automobile parts would be removed, as per Hindustan Times.

Even as the Trump administration is open to tariff rate quotas (TRQ), which means that tariff-free access for any product will apply up to a certain quantity, the insistence of such access for agriculture and dairy sectors is proving to be an issue, according to the report.