Indian Farmers Oppose US Trade Deal Over Agriculture Fears, Warn of Nationwide Protests

 

Farmers Warn of Escalating Protests if US Trade Deal Includes Agriculture

A national network of farmers' groups has raised strong objections to the government’s ongoing trade negotiations with the United States, warning that any move to allow duty-free access to US agricultural goods could severely harm Indian farmers.

The Indian Coordination Committee of Farmers Movements (ICCFM), which represents farmers across 11 states—including Punjab, Haryana, Uttar Pradesh, Karnataka, Tamil Nadu, and Maharashtra—has written to Commerce Minister Piyush Goyal, urging the government to keep agriculture completely out of the proposed trade deal.

In their letter, the group warned that if the government pushes forward with what they see as anti-farmer trade policies, they will have no choice but to step up their protests. They drew a parallel with India’s withdrawal from the RCEP (Regional Comprehensive Economic Partnership) in 2019, hoping that a similar decision would be made now to protect farmers' interests.

The letter points out that US agriculture is under pressure due to ongoing trade disputes with countries like China, Mexico, and Canada—leading to a slump in its agricultural exports. For example, US soybean exports fell sharply from $34.4 billion in 2022 to $24.5 billion in 2024. Corn exports also declined, dropping from $18.6 billion to $13.9 billion in the same period. According to the farmers’ group, this surplus could be pushed into Indian markets if the trade deal goes through, overwhelming local farmers.

Another major concern raised by ICCFM is the sheer scale of subsidies that American farmers receive. The 2024 US Farm Bill has allocated an enormous $1.5 trillion for subsidies. This allows US farm products to be sold globally at unrealistically low prices, giving them an unfair advantage. The group fears that allowing such imports would not only hurt Indian farmers but also contradict India’s long-standing stance at the World Trade Organization (WTO), where it has consistently opposed these kinds of subsidies.

They also cited a recent report from the State Bank of India (SBI), which estimated that opening India’s dairy sector to US imports could cost Indian dairy farmers over ₹1.03 lakh crore every year. Milk prices could drop by at least 15%, a blow to small dairy farmers already struggling to compete with large multinational agribusinesses.

The farmers also criticised the US for challenging India’s support systems for farmers at the WTO—particularly the public procurement of food grains, which the US claims violate trade rules. The ICCFM pointed out that this is hypocritical, given that the US heavily supports its own farmers. A past OECD report even showed that Indian farmers received a negative 14% in support between 2000 and 2016, compared to the massive subsidies given in the US.

The letter also raised concerns about edible oil imports. The ICCFM noted that India, once self-sufficient in edible oils, now imports about 70% of its needs. On May 31, the government slashed import duties on crude palm, soybean, and sunflower oils from 20% to 10%, citing inflation. However, the farmers argue that this mainly benefits big importers and processors, not the consumers or farmers. They believe India has the potential to grow more oilseeds domestically if given the right support.

The farmers urged the Indian government not to repeat the mistakes of other trade deals and to stand firm in protecting its small and marginal farmers, who form the backbone of the country’s food security.