Punjab farm leaders, economist jittery over US-India trade deal

Farm leaders and agricultural experts have reacted sharply to the US-India trade deal, warning that the agreement could open the floodgates for American agricultural products and hurt Indian farmers.

Farmer leaders Balbir Singh Rajewal and Sarwan Singh Pandher said the government’s claim of having safeguarded farmers’ interests by protecting sensitive agricultural and dairy products — including maize, wheat, rice, soybean, poultry, milk, cheese, ethanol (fuel), tobacco, certain vegetables and meat — did not stand up to closer scrutiny.

“While the government claims that sensitive sectors have been protected, a closer look shows that it has offered the US a potential foothold in the Indian food market, which could prove disastrous for the rural economy,” Rajewal said.

He added that despite repeated efforts over the years, the US had been kept out of the Indian food market.

“Allowing backdoor entry of corn and soybean through imports of dried distillers’ grains and soybean oil is one such step. These are genetically modified products, which we have been opposing for a long time. For the first time, Indian agriculture is being integrated into an international trade agreement, and maize and soybean are entering the market indirectly,” he said.

Pandher warned that cheaper US agricultural imports could flood the Indian market. “Apple growers have already suffered a severe blow due to this deal, and this is only the beginning. Once the US gets a foothold, it will press the government to open up other sectors as well,” he said.

‘Weakened non-tariff barriers’

Agricultural economist Devinder Sharma alleged that India had weakened its non-tariff barriers — which he described as a key safety firewall — while the US had not diluted its own health and safety standards.

“Through tariff barriers, India used to prevent the import of products that could be detrimental to our economy. Removing them exposes our farmers to unfair competition,” he said.

Agricultural economist Prof Kesar Singh Bhangoo said India currently levied import duties ranging from 15 per cent to 70 per cent on several agricultural products from the US. “Under the new arrangement, US tariffs have been raised from 0–5 per cent to 18 per cent, while India has reportedly reduced tariffs from 15–70 per cent to zero in certain categories. Additionally, India has opened up segments of the farm sector to US imports. Import of apples, nuts, DDG and soybean oil could significantly alter market competition and adversely impact domestic producers,” he added.