Why farmer unions have called for a strike against US-India trade deal framework

India-US trade agreement: Farmer unions under the banner of the Samyukt Kisan Morcha (SKM) have announced nationwide protests against the framework for the interim India-US trade agreement signed last week. Calling it a direct threat to Indian agriculture, dairy and rural livelihoods, the unions have announced protests culminating in a general strike on Thursday (February 12). Their concerns range from Indian markets being opened up to US agricultural products, benefitting American agribusiness corporations at the cost of Indian farmers, to relaxations for specific sectors already under strain domestically. What the trade framework includes The framework states that India will “eliminate or reduce tariffs on all U.S. industrial goods and a wide range of U.S. food and agricultural products.” These include dried distillers’ grains (DDGs), a byproduct of ethanol manufacturing used as animal feed, red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine and spirits. Farmer unions argue that this framework directly contradicts repeated assurances by Commerce Minister Piyush Goyal that agriculture and dairy would be kept outside Free Trade Agreements (FTAs). They also point to provisions of other recent FTAs, signed with New Zealand, the European Union (EU) and the UK. Farmer organisations have also highlighted that tariffs on Indian goods entering the US have risen to 18% compared to the period before US President Donald Trump introduced his so-called reciprocal tariffs. Additionally, India’s tariffs on US agricultural products, which earlier ranged between 30 to 150%, are being reduced to zero. Farmers argue that such an arrangement is deeply unequal. With 86% of Indian farmers being small and marginal (with landholdings under one to two hectares and under one hectare, respectively), such competition could be devastating. SKM national coordination committee member Dr Darshan Pal says, “Indian agriculture would be left hanging at the mercy of multinational corporations, undermining food sovereignty, rural employment and long-term sustainability.” Specific concerns over dairy, animal feed and GM crops One of the key concerns raised by farmers relates to the reduction of non-tariff barriers, which could facilitate imports of US milk and dairy products. “Earlier restrictions on milk from animals fed with meat and animal by-products acted as safeguards. These protections are now being diluted, posing a direct threat to India’s vast dairy sector that supports millions of rural households,” said Dr Darshan Pal, a national coordination committee member of SKM. Some in the Indian poultry, dairy and aqua industries have noted that India could benefit from the increased availability of cheaper and probably better-quality DDGS. Reports have also indicated that concessions may also be quota-based, covering only a small amount of DDGs. However, the DDGS is derived from genetically modified (GM) corn, which India has resisted so far. Farmer unions fear that control over India’s animal feed market could be monopolised by US corporations. They also warn that the agreement opens the door to imports of GM foods and seeds, which could damage soil fertility, biodiversity and domestic seed systems, while destabilising cereal, pulse and oilseed markets. Soybean farmers and those in the processing industry may lose out, mainly in Madhya Pradesh, Maharashtra and Rajasthan. Imports of US wheat, along with soybean oil, ethanol, fresh fruits such as apples, pineapples and coconuts, and dry fruits, including cashew, may also affect farmers. Regions like Jammu and Kashmir, Himachal Pradesh, Arunachal Pradesh and the North-Eastern states are expected to be among the worst-hit, according to SKM leaders. SKM has also argued that the deals come at a time when Indian agriculture is already under strain, highlighting agricultural growth slowing to 3.1%, Minimum Support Prices often remaining below the cost of crops, increasing peasant debt, etc. Agriculture policy expert Devinder Sharma explained the case of apples, which led to protests in Himachal Pradesh last month: “Under the India-New Zealand trade agreement, India has agreed to provide quota-based duty concessions on apples. India’s existing import duty on apples is about 50%, and under the pact, New Zealand apples imported within a specified quota will face a concessional duty of 25%.” “Similarly, under the India-EU Free Trade Agreement, which was signed in January but still requires parliamentary and EU ratification before becoming operational, apples from the EU will be allowed into India under an annual quota at a concessional duty of 20%. If a US-India trade deal were to reduce import duties on apples to zero, many apple farmers, particularly in Jammu and Kashmir and Himachal Pradesh, fear it could be devastating. Such duty cuts would directly weaken price protection and could lead to a surge of cheaper imports, competing with domestic produce in local markets,” Sharma said. Apple farmers have also cited other concerns, including unpredictable weather and climate change-related disruptions that have impacted the sector. He added, “Apart from the India-US trade framework, India had reduced the import duty on raw cotton from 11% to zero between October and December. During this period, additional imports of around 30 lakh bales were reported, and domestic raw cotton prices fell by Rs 1,000 to Rs 1,500 per quintal. This was a temporary measure and not linked to any trade deal, but it clearly shows the larger impact of import liberalisation.” What farmers plan ahead SKM has appealed to political parties, farmers’ organisations, agricultural workers’ unions, trade unions and mass organisations to oppose what it calls an “anti-national” trade agreement being pushed without parliamentary discussion. The nationwide General Strike is intended as a collective response to the agreement and what they see as a broader agrarian crisis. Farmer leaders say mobilisation is underway across the country, with particular intensity in Punjab, where farmer unions have a strong base. SKM has warned that the agreement, being signed in its current form, will trigger large-scale and sustained protests across India.