Kerala opposes Indo-US free trade deal, urges centre to safeguard farmers’ interests

By A Representative

The Kerala Government has formally urged the Union Government to halt negotiations on the proposed Indo-US Free Trade Agreement (FTA), warning that concessions in the agriculture and dairy sectors would have grave consequences for millions of small-scale farmers in the state.

In a strongly worded letter addressed to Union Commerce and Industry Minister Piyush Goyal and Union Agriculture Minister Shivraj Singh Chouhan, Kerala Agriculture Minister P. Prasad has expressed “firm and unequivocal opposition” to the proposed FTA or any interim trade deal with the United States, citing the potentially devastating socio-economic and ecological fallout for Kerala’s agrarian economy.

The letter, dated July 2, flags several areas of concern, particularly the threat posed by cheaper U.S. agricultural imports, including subsidized soybean oil and synthetic rubber, which could destabilize key sectors like coconut, rubber, spices, and plantation crops. Prasad warns that tariff reductions and import liberalization, as proposed under the FTA and recommended by NITI Aayog, risk replicating the damage caused by the earlier Indo-ASEAN FTA, which led to a severe agrarian crisis in Kerala.

“Kerala’s agricultural economy, based on crops like coconut, rubber, pepper, cardamom, tea, and coffee, supports millions of smallholders. The FTA would expose these sectors to unfair competition and deepen rural distress,” the letter states.

Highlighting the contradiction between proposed policy changes and India’s current stance on genetically modified (GM) crops, Prasad points out that the import of GM soybean and maize—reportedly being considered—runs counter to the Union Government’s stated position of not allowing GM seeds for food use. He also raised alarm over threats to Kerala’s biodiversity, particularly in ecologically sensitive areas like the Western Ghats.

The minister criticized the lack of transparency in trade negotiations, underscoring that agriculture is a state subject under the Constitution and that any decision impacting the sector must involve consultations with state governments. “The lack of public disclosure, parliamentary discussion, and state-level consultation raises serious concerns about democratic accountability,” Prasad noted.

With the U.S. set to reimpose a 26% reciprocal tariff on Indian goods after July 9, the Kerala government acknowledged the Centre’s efforts to protect sectors like textiles and engineering. However, it strongly urged against yielding to American pressure on agriculture and dairy.

The letter concludes with a request for an urgent meeting with the Union Ministers to ensure Kerala’s agricultural interests are protected.

“This is a matter of survival for our farmers and safeguarding the socio-economic and ecological fabric of our State and Nation,” Prasad emphasized.

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