The Indian Coordination Committee of Farmers Movements (ICCFM), a coalition of farmers’ organizations from across India, has issued a strong appeal to the Union Government urging it not to proceed with any trade agreement with the United States that could undermine the livelihoods of Indian farmers. In a detailed letter addressed to Union Commerce Minister Piyush Goyal, the ICCFM expressed serious apprehensions about the ongoing negotiations with the US, which they fear may lead to an interim or comprehensive Free Trade Agreement (FTA) that includes provisions for the liberalization of agricultural imports.
The ICCFM warned that including agriculture in such a deal could endanger India’s food sovereignty, cripple the rural economy, and expose Indian farmers to an uneven playing field dominated by heavily subsidized American agribusiness. The organization emphasized that agriculture must be completely excluded from any trade arrangement with the US.
Highlighting recent trends, the ICCFM pointed out that the US agricultural trade deficit has almost doubled due to reduced exports caused by ongoing trade tensions with China, Mexico, and Canada. Soybean and corn exports from the US dropped significantly between 2022 and 2024, creating surplus stock that American agribusinesses are now eager to export to large consumer markets like India. The 2024 US Farm Bill, which earmarks $1.5 trillion in agricultural subsidies, is seen by Indian farmers as a mechanism that enables American producers to undercut global prices, flooding markets with cheap exports and endangering local farming economies.
One of the most pressing concerns raised by the ICCFM is the potential impact on India’s dairy sector. A report by the State Bank of India has estimated that if US dairy products enter the Indian market, domestic dairy farmers could face an annual income loss of over ₹1.03 lakh crore. With the Indian dairy industry supporting nearly 8 crore people and contributing 2.5–3% to the Gross Value Added, a drop in milk prices caused by subsidized imports could devastate the rural economy, particularly affecting smallholders, landless livestock keepers, and women.
The ICCFM also flagged several other agricultural commodities that could be adversely impacted by the FTA. Maize, which is integral to crop diversification and the poultry industry in states like Punjab and Haryana, could face a price crash if US imports are allowed at lower or zero duties, pushing prices below the Minimum Support Price (MSP). Similarly, past instances of wheat and rice import liberalization have shown how domestic prices can be depressed, hurting farmer incomes. The proposed American Relief Act of 2025 is expected to boost US rice subsidies by up to 187%, creating further risks for Indian producers.
India's edible oil sector has already suffered from earlier duty cuts, with over 70% of current needs met through imports. Farmers’ groups warn that reducing import duties on soybean oil and other edible oils benefits only large importers while domestic producers are sidelined. US dominance in soybean oil exports could severely impact Indian oilseed cultivation.
The import of US fruits and nuts, including apples, almonds, and walnuts, has also spiked with duty reductions, causing distress among Himalayan horticulturalists. Between 2019–20 and 2024–25, the value of tree nut imports jumped from ₹6,232 crore to ₹9,482 crore. Apple imports rose sharply after retaliatory duties were removed, raising concerns of market saturation and loss for local growers.
A similar trajectory is being observed with pulses. The reduction of import duties during the G20 summit led to a near doubling of pulse imports in a single year. With chickpeas and lentils among the primary US exports, Indian farmers fear further liberalization will flood the market and depress prices.
The cotton sector is also feeling the strain. India is one of the world’s largest cotton producers, yet imports from the US have surged—by over 300% in 2024–25 alone—mainly due to Chinese import restrictions on US cotton. The US government covers 74% of production costs through subsidies, creating an unfair advantage that threatens Indian cotton farmers.
Poultry and feed grain producers are likewise at risk. Since the WTO ruling in favor of US poultry exporters, frozen chicken leg imports have grown, undermining India’s poultry industry, which supports a large network of soybean and corn farmers. The ICCFM warns that lower import duties could derail this sector, already heavily indebted and reliant on over ₹1.1 lakh crore in bank financing.
Concerns extend to rubber, sugar, and other commodities as well. Synthetic rubber imports from the US have depressed prices for natural rubber, impacting farmers in states like Kerala. The ICCFM also fears that the US could exploit trade loopholes by importing raw sugar from countries like Brazil, refining it domestically, and re-exporting it to India, thus undermining India’s sugar industry.
The ICCFM has also raised red flags about the potential import of transgenic crops and genetically modified produce from the US, including GM corn, soy, canola, and apples. Indian farmers and consumers remain opposed to such products over biosafety and cultural concerns. The movement calls for a strict prohibition on the import of transgenic agricultural items.
Beyond direct economic threats, the letter highlights the inherent trade injustice and lack of a level playing field. The US, which has allocated hundreds of billions of dollars in farm subsidies through successive Farm Bills, continues to challenge India’s limited farm support at the WTO, despite Indian farmers receiving net negative support according to the OECD. Infrastructure investment in US agriculture vastly outpaces that in India, further widening the competitiveness gap.
Adding to these fears are concerns over intellectual property rights provisions typically included in US trade deals. ICCFM warned that such clauses could undermine farmers’ rights to save and exchange seeds, facilitating control of seed markets by multinational corporations and eroding seed sovereignty.
In closing, ICCFM has urged the Indian government not to sign any trade agreement, even an interim one, with the United States that includes agriculture. Instead, it recommends the government push for a fair resolution of trade disputes at the WTO, particularly regarding US agricultural subsidies. The committee warns that any trade deal that compromises Indian farmers’ interests will spark widespread and intensified protests. Drawing parallels with India’s withdrawal from the Regional Comprehensive Economic Partnership (RCEP), ICCFM hopes the government will once again act in defense of India’s farming communities.
Signed by Yudhvir Singh on behalf of the Indian Coordination Committee of Farmers Movements, the letter underscores a growing grassroots resistance to trade policies perceived as favoring global agribusiness at the expense of Indian farmers, their livelihoods, and the nation’s food security.
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