What are Indian farmers’ concerns over impacts of India-U.S. BTA | Explained
The story so far: This year, on February 7, the United States of America and India announced the framework for an interim agreement regarding reciprocal
The story so far: This year, on February 7, the United States of America and India announced the framework for an interim agreement regarding reciprocal and mutually beneficial trade, committing to the broader U.S.-India Bilateral Trade Agreement (BTA) negotiations of 2025, which included additional market access commitments and support more resilient supply chains. As the U.S. Trade Representative Jamieson Geer concluded his two-day visit to New Delhi on June 24, following multiple meetings with Commerce Minister Piyush Goyal during which they reviewed the core elements of the interim trade agreement as well as the broader BTA, the farmer groups are yet again at the forefront to express their anguish through demonstrations, events and protests. Samyukt Kisan Morcha (SKM), an umbrella organisation of about 500 farmers’ associations, Samyukta Kisan Morcha (Non-Political), Kisan Mazdoor Morcha (KMM) and Bhartiya Kisan Union (Chaduni), among other farmer outfits, have been raising their voices to air their concerns over the adverse impacts of the BTA. What the BTA says The key terms of the interim agreement surrounding agricultural and food sectors, among others, included that India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of U.S. food and agricultural products, including dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits and additional products.
Recognising the importance of working together to resolve long-standing concerns, India also agreed to address long-standing non-tariff barriers to the trade in U.S. food and agricultural products. These terms raised concerns among farmers and horticulturists about the adverse impact on their livelihoods. Why farmers are worried Farmers’ outfits are worried that the proposed trade agreement could inflict damage on Indian agriculture, as opening India’s agricultural markets to heavily subsidised American produce would leave farmers across the country struggling to compete. The cheaper imports of feed substitutes such as DDGS and soybean oil could depress the prices of maize and soybeans. India has been almost self-dependent for cotton, with double the production of the U.S. Any withdrawal of cotton import duty will sink domestic cotton prices. Cotton imports are regulated through quotas, but any relaxation on U.S. cotton imports will be disastrous for farmers in States like Gujarat, Maharashtra, Punjab, and Haryana, especially following a sharp decline in domestic prices. Also, easing certain non-tariff barriers could increase the risk of the entry of Genetically Modified Organism (GMO) material and the spread of new pests, plant diseases and invasive weeds. Such developments may pose a serious threat to the country’s agricultural ecosystem. Agriculture in the United States operates on large landholdings, higher subsidies and economies of scale, enabling producers to export at lower prices.
The BriefWire