Farmers interests come first
Farmer-related issues are extremely sensitive for India.
The livelihood of the majority of people in India is dependent on the agricultural sector. Therefore, the interests of farmers cannot be neglected in the country. U.S. President Donald Trump first imposed a 25% tariff and later increased it to 50%. By increasing pressure on India, Trump wants to impose all his arbitrary conditions, but on the occasion of the birth centenary of the great agricultural scientist and architect of India’s Green Revolution, M.S. Swaminathan, Prime Minister Narendra Modi gave a direct response to Trump’s threats. He said,
“India will never compromise on the interests of its farmers, livestock rearers, and fishermen. I personally know that I will have to pay a heavy price for this, but I am ready for it. India stands firmly with its farmers, and I am prepared to face any kind of challenge for their welfare.”
It is now clear that the U.S.–India trade deal is stuck precisely on the issue of farmers’ interests. Trump is trying to blackmail India by exerting pressure. He has even set the date of August 27 to implement the additional 25% tariff. It is very important to understand why India is clashing with America over the farmers’ issue.
The United States is constantly pressuring India to open its agriculture market for American products. America wants its dairy, poultry, maize, soybeans, rice, wheat, ethanol, fruits, and dry fruits such as almonds and pistachios to enter the Indian market without any tariffs. However, so far, India has agreed to open its market only for a few products like dry fruits and apples. In the case of maize, soybeans, wheat, and dairy sectors, India has firmly refused.
The main reason behind this is that most of America’s maize and soybeans are genetically modified (GM), while India has not yet allowed the import of GM crops. GM crops are considered dangerous for health and the environment in India, and many organizations linked to the BJP itself are opposed to GM crops.
Apart from GM crops, dairy products have also become a major point of conflict in the India–U.S. trade deal. In India, dairy is not just a source of food but also a source of income for millions of small and landless farmers.
Indian farmers have already staged a long protest demanding legal guarantees for Minimum Support Price (MSP) and against corporate control over markets and their land. America wants to turn India into a dumping yard for its goods. The production cost of one quintal of wheat in the U.S. is ₹1,700, while the Indian government’s MSP for one quintal of wheat is ₹2,425. Indian farmers, on average, own less than one hectare of land. If India’s wheat and rice markets are opened to American companies, everyone knows what will happen to Indian farmers.
America is pressuring India to open its markets for wheat, cotton, maize, soy, American butter, and dairy products in order to reduce its $45 billion trade deficit with India. But India is already self-reliant in these products. Another sensitive aspect is that in U.S. animal husbandry, animals are fed meat. Even cows are given meat-based feed to increase milk production. A large part of India’s population is vegetarian, and American dairy products do not align with their religious and cultural values. Indian farmers are already burdened with debt, and the series of farmer suicides continues to this day.
The biggest concern is the livelihood of millions of small farmers in India. The agricultural sector contributes 16% to India’s GDP. During the COVID-19 pandemic, if any sector saved India, it was agriculture. Even during the pandemic, no Indian went to bed hungry. In such circumstances, protecting farmers’ interests is the government’s duty.
India must focus on making Indian agriculture more competitive in the global market, increasing farmers’ incomes, strengthening agricultural research, and promoting food processing. India should also build alliances to expand bilateral trade with multiple countries so that we have the capacity to face America’s challenges head-on.