The China Mail - What's at stake for Indian agriculture in Trump's trade deal?

USD -
AED 3.673042
AFN 63.503991
ALL 82.403989
AMD 368.150403
ANG 1.790403
AOA 918.000367
ARS 1465.449815
AUD 1.42575
AWG 1.8025
AZN 1.70397
BAM 1.705709
BBD 2.013483
BDT 122.708482
BGN 1.69088
BHD 0.37702
BIF 2985
BMD 1
BND 1.290663
BOB 6.90816
BRL 5.152304
BSD 0.999721
BTN 94.239742
BWP 13.585663
BYN 2.777729
BYR 19600
BZD 2.010527
CAD 1.415225
CDF 2280.000362
CHF 0.807055
CLF 0.02293
CLP 902.460396
CNY 6.769604
CNH 6.783725
COP 3452.68
CRC 453.506829
CUC 1
CUP 26.5
CVE 96.403894
CZK 21.091104
DJF 177.720393
DKK 6.516504
DOP 58.403884
DZD 133.34504
EGP 49.986489
ERN 15
ETB 158.37504
EUR 0.871881
FJD 2.235504
FKP 0.756415
GBP 0.755512
GEL 2.650391
GGP 0.756415
GHS 11.22504
GIP 0.756415
GMD 73.503851
GNF 8775.000355
GTQ 7.625892
GYD 209.119888
HKD 7.83685
HNL 26.68504
HRK 6.568104
HTG 130.583803
HUF 306.820388
IDR 17826.3
ILS 2.95976
IMP 0.756415
INR 94.330504
IQD 1310
IRR 1375000.000352
ISK 125.530386
JEP 0.756415
JMD 157.959917
JOD 0.70904
JPY 161.30504
KES 129.403801
KGS 87.450384
KHR 4010.00035
KMF 429.503794
KPW 900.00035
KRW 1527.650383
KWD 0.30793
KYD 0.833035
KZT 487.855928
LAK 22055.000349
LBP 89550.000349
LKR 333.641485
LRD 182.150382
LSL 16.405039
LTL 2.95274
LVL 0.60489
LYD 6.375039
MAD 9.225039
MDL 17.654036
MGA 4200.000347
MKD 53.732839
MMK 2099.727916
MNT 3581.295381
MOP 8.070939
MRU 40.060379
MUR 47.850378
MVR 15.450378
MWK 1737.000345
MXN 17.326504
MYR 4.137904
MZN 63.910377
NAD 16.403727
NGN 1360.440377
NIO 36.610377
NOK 9.680204
NPR 150.787532
NZD 1.741735
OMR 0.384983
PAB 0.999725
PEN 3.384039
PGK 4.38775
PHP 60.716504
PKR 278.325038
PLN 3.71375
PYG 6138.96617
QAR 3.640504
RON 4.568104
RSD 102.170373
RUB 73.103247
RWF 1464
SAR 3.74824
SBD 8.061424
SCR 13.683262
SDG 600.503676
SEK 9.57882
SGD 1.292404
SHP 0.746601
SLE 24.750371
SLL 20969.503664
SOS 571.503662
SRD 37.402504
STD 20697.981008
STN 21.4
SVC 8.747449
SYP 110.532098
SZL 16.403649
THB 32.890369
TJS 9.272075
TMT 3.5
TND 2.91175
TOP 2.40776
TRY 46.438204
TTD 6.779085
TWD 31.715038
TZS 2630.985038
UAH 44.909735
UGX 3638.520172
UYU 39.96965
UZS 12005.000334
VES 606.63266
VND 26310
VUV 118.773512
WST 2.751708
XAF 572.078806
XAG 0.015419
XAU 0.00024
XCD 2.70255
XCG 1.801643
XDR 0.703697
XOF 565.000332
XPF 104.250363
YER 238.603589
ZAR 16.458037
ZMK 9001.203584
ZMW 17.919703
ZWL 321.999592
  • CMSD

    0.0000

    22.29

    0%

  • BCC

    3.8500

    74.66

    +5.16%

  • JRI

    0.0500

    12.67

    +0.39%

  • CMSC

    0.0500

    22.37

    +0.22%

  • NGG

    -1.2400

    79.44

    -1.56%

  • BTI

    -0.5800

    58.91

    -0.98%

  • AZN

    -2.9600

    174.93

    -1.69%

  • RIO

    -2.5900

    100.08

    -2.59%

  • RBGPF

    -0.5300

    60.61

    -0.87%

  • RELX

    -0.8300

    31.18

    -2.66%

  • GSK

    -1.4800

    50.67

    -2.92%

  • BCE

    0.0000

    23.28

    0%

  • VOD

    -0.2300

    14.3

    -1.61%

  • BP

    -1.0400

    39.1

    -2.66%

  • RYCEF

    -0.0300

    18.4

    -0.16%

What's at stake for Indian agriculture in Trump's trade deal?
What's at stake for Indian agriculture in Trump's trade deal? / Photo: © AFP/File

What's at stake for Indian agriculture in Trump's trade deal?

Indian farmers have expressed concern that New Delhi has made too many concessions to Washington after the two countries brokered a new trade deal that would lower tariffs.

Text size:

Under the terms of the deal that was laid out in a joint statement from both countries released on Saturday, India will "eliminate or reduce tariffs on all US industrial goods" and other food and agricultural products.

Meanwhile, the US will apply a reciprocal tariff rate of 18 percent on goods from India, including textiles and apparel, leather and footwear, plastic and rubber, organic chemicals, and certain machinery, the joint statement added.

The terms were released after US President Donald Trump announced a trade deal with India, stating that Prime Minister Narendra Modi had promised to halt Russian oil purchases.

Modi lauded the new trade deal in a post on the social media platform X later on Saturday, saying it would open up opportunities and generate jobs.

But Indian farmer unions weren't convinced, calling the deal a "total surrender" to American agricultural giants.

"Indian industry, agriculture... are now under grave threat of cheap imports that will be dumped into Indian markets," the Samyukt Kisan Morcha (SKM), a coalition of multiple farmers' unions, said in a statement following the announcement.

The group also called on farmers to join a nationwide protest on February 12.

- What's on the table? -

The joint statement states that India will "eliminate or reduce" tariffs on a "wide range of US food and agricultural products".

This includes tree nuts, some fresh fruit, soybean oil, wine, spirits and other "additional products" that were not specified.

Siraj Hussain, a former agriculture ministry top official, said Indian consumers were purchasing more nuts, "so it's import may not have much impact on local production", and will help satisfy high demand.

Domestic growers do worry, however, about cheap imports on items such as apples, which they believe could have dire impacts on local producers.

"Import of fresh fruits such as apples... will ruin the farmers," SKM said. Officials hope safeguards included into the agreement -- such as import quotas or minimum import prices for commodities including apples -- will reduce the impact of foreign competition.

New Delhi's promise of lower duties on dried distillers' grains and red sorghum for animal feed could also reduce the need for local soybean meal.

Opposition lawmaker Jairam Ramesh said the move to ease imports of dried distillers' grains and soybean oil would hurt "millions of soybean farmers" in key Indian states such as Maharashtra and Madhya Pradesh.

- What's off the table? -

To stem concerns, India's Trade Minister Piyush Goyal reassured farmers that their interests would be safeguarded, adding that the key red lines that had been drawn by New Delhi had not been crossed.

He said "no concessions" had been extended in "sensitive areas" such as grains, spices, dairy, poultry, meat and several vegetables and fruits -- including potatoes, oranges and strawberries.

The trade minister also said genetically modified crops were not part of the agreement.

This includes GM soybean, which the US has searched hard to find new markets for.

- Small farms 'can't compete' -

While the farm sector contributes just 16 percent to India's GDP, it provides livelihood to over 45 percent of the population.

This makes the industry a key voting bloc often wooed by political parties. Farmer groups have also shown, on multiple occasions, that they are a street force to be reckoned with.

In 2021, the government abandoned plans to reform the sector after months of intense protests that blocked the national capital's highways and led to Delhi's historic Red Fort complex being stormed by tractors.

"Indian farms are very small and they can't really compete with highly subsidised US agriculture," Hussain, the former agriculture ministry official, said.

- India and US trade -

Between January-November 2025, when New Delhi was negotiating with Washington, Indian imports of American agricultural goods rose 34 percent year-on-year, raking in just under $2.9 billion.

Top imports included cotton, soybean oil, ethanol and various nuts such as almonds. This happened even before the trade deal, although the rise is partly due to India reducing tariffs on some of these US items.

Experts have said that a further reduction on duties for products such as soybean oil, which was announced in the joint statement, will likely lead to a jump in goods being imported by India from the US.

A.Kwok--ThChM