Skip to main content

Farmers’ groups warn Indian government against US trade deal threatening agriculture sector

By A Representative 
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.

Comments

TRENDING

A comrade in culture and controversy: Yao Wenyuan’s revolutionary legacy

By Harsh Thakor*  This year marks two important anniversaries in Chinese revolutionary history—the 20th death anniversary of Yao Wenyuan, and the 50th anniversary of his seminal essay "On the Social Basis of the Lin Biao Anti-Party Clique". These milestones invite reflection on the man whose pen ignited the first sparks of the Great Proletarian Cultural Revolution and whose sharp ideological interventions left an indelible imprint on the political and cultural landscape of socialist China.

India's chemical industry: The missing piece of Atmanirbhar Bharat

By N.S. Venkataraman*  Rarely a day passes without the Prime Minister or a cabinet minister speaking about the importance of Atmanirbhar Bharat . The Start-up India scheme is a pillar in promoting this vision, and considerable enthusiasm has been reported in promoting start-up projects across the country. While these developments are positive, Atmanirbhar Bharat does not seem to have made significant progress within the Indian chemical industry . This is a matter of high concern that needs urgent and dispassionate analysis.

Ahmedabad's Sabarmati riverfront under scrutiny after Subhash Bridge damage

By Rosamma Thomas*  Large cracks have appeared on Subhash Bridge across the Sabarmati in Ahmedabad, close to the Gandhi Ashram . Built in 1973, this bridge, named after Subhash Chandra Bose , connects the eastern and western parts of the city and is located close to major commercial areas. The four-lane bridge has sidewalks for pedestrians, and is vital for access to Ashram Road , Ellis Bridge , Gandhinagar and the Sabarmati Railway Station .

Remembering a remarkable rebel: Personal recollections of Comrade Himmat Shah

By Rajiv Shah   I first came in contact with Himmat Shah in the second half of the 1970s during one of my routine visits to Ahmedabad , my maternal hometown. I do not recall the exact year, but at that time I was working in Delhi with the CPI -owned People’s Publishing House (PPH) as its assistant editor, editing books and writing occasional articles for small periodicals. Himmatbhai — as I would call him — worked at the People’s Book House (PBH), the CPI’s bookshop on Relief Road in Ahmedabad.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

No action yet on complaint over assault on lawyer during Tirunelveli public hearing

By A Representative   A day after a detailed complaint was filed seeking disciplinary action against ten lawyers in Tirunelveli for allegedly assaulting human rights lawyer Dr. V. Suresh, no action has yet been taken by the Bar Council of Tamil Nadu and Puducherry, according to the People’s Union for Civil Liberties (PUCL).

Farewell to Robin Smith, England’s Lionhearted Warrior Against Pace

By Harsh Thakor*  Robin Smith, who has died at the age of 62, was among the most adept and convincing players of fast bowling during an era when English cricket was in decline and pace bowling was at its most lethal. Unwavering against the tormenting West Indies pace attack or the relentless Australians, Smith epitomised courage and stroke-making prowess. His trademark shot, an immensely powerful square cut, made him a scourge of opponents. Wearing a blue England helmet without a visor or grille, he relished pulling, hooking and cutting the quicks. 

Urgent need to study cause of large number of natural deaths in Gulf countries

By Venkatesh Nayak* According to data tabled in Parliament in April 2018, there are 87.76 lakh (8.77 million) Indians in six Gulf countries, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). While replying to an Unstarred Question (#6091) raised in the Lok Sabha, the Union Minister of State for External Affairs said, during the first half of this financial year alone (between April-September 2018), blue-collared Indian workers in these countries had remitted USD 33.47 Billion back home. Not much is known about the human cost of such earnings which swell up the country’s forex reserves quietly. My recent RTI intervention and research of proceedings in Parliament has revealed that between 2012 and mid-2018 more than 24,570 Indian Workers died in these Gulf countries. This works out to an average of more than 10 deaths per day. For every US$ 1 Billion they remitted to India during the same period there were at least 117 deaths of Indian Workers in Gulf ...

Muslim women’s rights advocates demand criminalisation of polygamy: Petition launched

By A Representative   An online petition seeking a legal ban on polygamy has been floated by Javed Anand, co-editor of Sabrang and National Convener of Indian Muslims for Secular Democracy (IMSD), inviting endorsements from citizens, organisations and activists. The petition, titled “Indian Muslims & Secular Progressive Citizens Demand a Legal Ban on Polygamy,” urges the Central and State governments, Parliament and political parties to abolish polygamy through statutory reform, backed by extensive data from the 2025 national study conducted by the Bharatiya Muslim Mahila Andolan (BMMA).