Why Indian farmers are worried about trade deal with US
What's the story
The Samyukta Kisan Morcha (SKM), a coalition of various farmer unions, has expressed concerns over the recently announced India-US trade deal. The farmers' body criticized the claim that India's import duty on several agricultural products has been reduced to zero in this "historic" agreement. They fear that it will allow the US to flood Indian markets with heavily subsidized agricultural products, potentially devastating India's peasantry.
Criticism
SKM accuses Modi government of betraying Indian farmers
The SKM strongly condemned the trade deal, accusing the Modi government of betraying Indian farmers by allowing a 0% import tariff on US goods. However, Commerce and Industry Minister Piyush Goyal assured that India's sensitive agriculture and dairy sectors have been protected in this pact.
Sector assurance
Goyal assures agriculture, dairy sectors protected
Goyal assured that Prime Minister Narendra Modi has always championed the agriculture and dairy sectors, safeguarding their interests. He said, "The sensitive factors of India's economy, particularly agriculture and dairy, have been protected." Goyal further clarified that a joint statement will be issued by both countries soon to outline the details of the pact.
Deal announcement
Deal includes India reducing 'tariffs, non-tariff barriers' to 0
US President Donald Trump announced on Monday that India and the US have agreed to a long-awaited trade deal. He said Washington will lower the reciprocal tariff on Indian goods to 18%. The deal also includes India's plan to reduce "tariffs and non-tariff barriers" against the US to zero, and purchase American goods worth over $500 billion.
Trade impact
Exports of more American farm products to India
US Secretary of Agriculture Brooke Rollins said the trade agreement will allow exports of more American farm products to India. She said, "India's growing population is an important market for American agricultural products and today's deal will go a long way to reducing this deficit."