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DEAL OR DILEMMA? COLLAPSE OF INDIAN AGRICULTURE!

India - US Interim Trade Deal

by Modern Rationalist
May 26, 2026
in 2026, EDITORIAL, MARCH
0
DEAL OR DILEMMA? COLLAPSE OF INDIAN AGRICULTURE!

 

The Constitution’s concept of sovereignty implies that India must not submit to powerful nations. Recent developments, however, raise concerns.

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When the U.S. announced tariff increases on many countries, it suddenly imposed a 50% tariff on Indian goods. U.S. President Donald Trump repeatedly spoke in a manner that appeared threatening, referring to India’s foreign and trade policies.

The U.S. pressured India not to import crude oil from Russia at lower prices. (Even though India imported oil at reduced prices, petrol and diesel prices did not decrease domestically—benefiting large corporations instead.)

While negotiations were ongoing regarding an India– U.S. agreement, the U.S. announced that India would import oil from Venezuela—now under U.S. influence—instead of Russia, and India remained silent.

Later, President Trump stated on social media that he had spoken with Prime Minister Narendra Modi, that Modi had agreed to purchase more from the U.S. and Venezuela, and that India had agreed to reduce tariffs and other barriers against the U.S. to “zero.” This announcement caused shock.

Reports about the proposed agreement have caused further alarm nationwide. The agreement would allow agricultural products from the U.S. to be imported at 0% tariff. This could spell disaster for Indian farmers.

 

“According to the India–U.S. joint statement, products such as DDGS (a by-product of ethanol production), red sorghum for cattle feed, nuts, fresh and processed fruits, soybean oil, wine, liquor, and other items are included. Farmers fear that American companies will monopolize the cattle-feed market.”

 

If American multinational corporations increase imports into India, what will happen to Indian agricultural products? Can Indian farmers compete with large American corporations? These are critical questions.

Leaders of Samyukt Kisan Morcha (SKM), a united farmers’ front, have strongly criticized the Union Government. They allege that the agreement amounts to surrendering to the U.S.

They warn that granting tariff exemptions for imports such as cotton and apples from the U.S. could cause severe economic damage to states like Jammu & Kashmir, Himachal Pradesh, Maharashtra, and Gujarat.

According to the India–U.S. joint statement, products such as DDGS (a by-product of ethanol production), red sorghum for cattle feed, nuts, fresh and processed fruits, soybean oil, wine, liquor, and other items are included. Farmers fear that American companies will monopolize the cattle-feed market.

Of the 44 million tons of DDGS produced in the U.S., 15 million tons are ready for export. If even 25% of that enters India, the domestic maize market could collapse. Farmers also raise concerns about aflatoxin levels and the toxicity of glyphosate residues.

They also point out the contradiction: while the RSS has advocated protection of native cattle and restrictions on imports of milk from animals fed meat, it has now, they claim, yielded under pressure from “Master” Donald Trump.

Previously, exports from India to the U.S. were at 0% tariff. After 2019, they were increased to 3%, then to 50% a few months ago, and now reduced to 18%. Thus, from 0% to 18%, tariffs on Indian goods have effectively risen. This reduction from 50% to 18% is portrayed as a favor—like removing only part of a burden from a camel’s back.

At the same time, India has reduced tariffs on American goods from 30%–150% down to 0%.

When President Trump repeatedly claimed he had intervened to stop hostilities between India and Pakistan, Prime Minister Modi did not issue any denial. Now American officials are announcing India’s trade decisions. What injustice is this?

The Supreme Court of US has decided that the President Trump cannot act on reciprocal tariff on trade without the concurrence of US Congress. Even after the verdict Trump has confirmed that the tariff deal with India will not change but continue. The trade deal is only interim and it will be finalised in March 2026 as the Union Commerce Minister has stated. Let not that the deal be finalised so that the sovereignty of India is saved. Besides, the farmers’ life and welfare could be protected, who were promised by the BJP rule that their income would be doubled. The finalisation of the trade deal would put the direction in reverse gear

Tags: DEAL OR DILEMMA?INDIAN AGRICULTURE!
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