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

Academics urge Azim Premji University to drop FIR against Student Reading Circle

  By A Representative   A group of academics and civil society members has issued an open letter to the leadership of Azim Premji University expressing concern over the filing of a police complaint that led to an FIR against a student-run reading circle following a recent incident of violence on campus. The signatories state that they hold the university in high regard for its commitment to constitutional values, critical inquiry and ethical public engagement, and argue that it is precisely because of this reputation that the present development is troubling.

Was Netaji forced to alter face, die in obscurity in USSR in 1975? Was he so meek?

  By Rajiv Shah   This should sound almost hilarious. Not only did Subhas Chandra Bose not die in a plane crash in Taipei, nor was he the mysterious Gumnami Baba who reportedly passed away on 16 September 1985 in Ayodhya, but we are now told that he actually died in 1975—date unknown—“in oblivion” somewhere in the former Soviet Union. Which city? Moscow? No one seems to know.

UAPA action against Telangana activist: Criminalising legitimate democratic activity?

By A Representative   The National Investigation Agency's Hyderabad branch has issued notices to more than ten individuals in Telangana in connection with FIR No. RC-04/2025. Those served include activists, former student leaders, civil rights advocates, poets, writers, retired schoolteachers, and local leaders associated with the Communist Party of India (CPI) and the Indian National Congress. 

The ultimate all-time ODI XI: A personal selection of icons across eras

By Harsh Thakor* This is my all-time best XI chosen for ODI (One Day International) cricket:  1. Adam Gilchrist (W) – The absolute master blaster who could create the impact of exploding gunpowder with his electrifying strokeplay. No batsman was more intimidating in his era. Often his knocks decided the fate of games as though the result were premeditated. He escalated batting strike rates to surreal realms.

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.

Aligning too closely with U.S., allies, India’s silence on IRIS Dena raises troubling questions

By Vidya Bhushan Rawat*  The reported sinking of the Iranian ship IRIS Dena in the Indian Ocean near Sri Lanka raises troubling questions about international norms and the credibility of the so-called rule-based order. If indeed the vessel was attacked by the American Navy while returning from a joint exercise in Visakhapatnam, it would represent a serious breach of trust and a violation of the principles that govern such cooperative engagements. Warships participating in these exercises are generally not armed for combat; they are meant to symbolize solidarity and friendship. The incident, therefore, is not only shocking but also deeply ironic.

Asbestos contamination in children’s products highlights global oversight gaps

By A Representative   A commentary published by the International Ban Asbestos Secretariat (IBAS) has drawn attention to the challenges governments face in responding effectively to global public-health risks. In an article written by Laurie Kazan-Allen and published on March 5, 2026, the author examines how the discovery of asbestos contamination in children’s play products has raised questions about regulatory oversight and international product safety. The article opens by reflecting on lessons from the COVID-19 pandemic, noting that governments in several countries were slow to respond to early warning signs of the crisis. Referring to the experience of the United Kingdom, the author writes that delays in implementing protective measures contributed to “232,112 recorded deaths and over a million people suffering from long Covid.” The commentary uses this example to illustrate what it describes as the dangers of underestimating emerging threats. Attention then turns...

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Rajiv Shah  Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

The kitchen as prison: A feminist elegy for domestic slavery

By Garima Srivastava* Kumar Ambuj stands as one of the most incisive voices in contemporary Hindi poetry. His work, stripped of ornamentation, speaks directly to the lived realities of India’s marginalized—women, the rural poor, and those crushed under invisible forms of violence. His celebrated poem “Women Who Cook” (Khānā Banātī Striyāṃ) is not merely about food preparation; it is a searing indictment of patriarchal domestic structures that reduce women’s existence to endless, unpaid labour.