India-US trade deal talks: Under the proposed India-US trade agreement, India must maintain its agricultural policy stance, as lowering import duties on US farm products could pose risks to national food security, according to GTRI.The Global Trade Research Initiative (GTRI) cautions that permanent reduction of agricultural tariffs in the India-US free trade agreement (FTA) would be both irreversible and strategically unsound.GTRI warns that eliminating tariffs could result in subsidised US grains overwhelming Indian markets during global price downturns. Historical evidence shows that global grain prices plummeted between 2014 and 2016, with wheat prices falling under $160 per tonne, devastating African farmers.“India must retain policy space to manage food stocks, support rural incomes, and respond to global shocks. In today’s geopolitically unstable world, food security must remain sovereign,” GTRI Founder Ajay Srivastava was quoted as saying by PTI.Also Read | India hardens stance on farm sector concessions as India-US trade talks stretch
Why lower duties for US farm products could be devastating
As negotiations continue in Washington, there is increasing pressure to reduce tariffs on major US agricultural exports including rice, dairy, poultry, corn, almonds, apples, and genetically modified soy. American products including rice, dairy, poultry, and GM soy receive substantial subsidies, creating an uneven playing field for Indian farmers.Reducing tariffs on US agricultural imports could jeopardise India’s food security by subjecting small-scale farmers to subsidised imports and market fluctuations, warns GTRI. India needs to maintain tariff flexibility to safeguard over 700 million rural livelihoods and avoid previous trade agreement mistakes, it says.Ajay Srivastava highlighted that India’s dairy import protocols, particularly the stipulation against feeding animals with meat, blood and internal organs of other animals, effectively prevents US dairy products from entering the market.The US considers these regulations excessive. However, from an Indian perspective there are concerns about consuming butter produced from cows that have been fed meat and blood of other cattle.“India may never allow that. India’s dairy sector is built on millions of smallholders with one or two cows or buffaloes. Opening it to subsidised US imports could destroy livelihoods,” Srivastava said.A relaxation in poultry import regulations would severely impact domestic producers, considering India’s disconnected cold storage infrastructure and inadequate SPS (sanitary and phytosanitary) implementation.Also Read | Trade war: ‘Not planning to extend tariff pause after July 9’, says Donald Trump; India’s trade team extends US stayThe US expresses dissatisfaction with India’s regulations on genetically modified (GM) food, describing them as ambiguous and lacking scientific basis, which impedes American biotechnology exports.“India, however, is cautious due to strong public opposition to GM foods and concerns about environmental risks. It also notes that major regions like the EU are GM-free, and adopting GM crops could affect soil health and hurt India’s exports,” he added.Importing genetically modified corn and soymeal through “controlled” mechanisms, including coastal crushing of GM soy seeds for meal exports, poses significant risks to India’s agricultural sector.India’s decentralised supply chain infrastructure makes it vulnerable to GM traits seeping into domestic agricultural systems, which could lead to cross-contamination of local crops and negatively impact exports to markets sensitive about GM products.The GTRI founder noted that whilst the US views India’s requirement for non-GM and GM-free certificates across 24 products as unwarranted, even for non-commercially modified crops, India maintains this stance to ensure product traceability and preserve consumer trust.Additionally, he pointed out that substantial subsidies underpin US agricultural exports.In certain years, agricultural subsidies surpassed 50 per cent of production costs: rice (82 per cent), cotton (74 per cent), canola (61 per cent), wool (215 per cent).The US seeks to export various subsidised products to India, including apples, almonds, corn, dairy, poultry, and ethanol.Also Read | Big remittance cheer for NRIs! US Senate draft of Donald Trump’s ‘One Big Beautiful Bill’ reduces remittance tax to 1% from 3.5%; details here“If allowed in duty-free, these subsidised goods would undercut Indian producers and distort markets,” he said, adding, “India uses tariffs, ranging from 0 per cent to 150 per cent, to support its farm sector, which employs over 700 million people”.Whilst agriculture in the US operates on corporate principles, Indian agriculture remains fundamental to people’s sustenance.Import duties are crucial for protecting small-scale farmers, controlling price fluctuations, and maintaining food security.“The US itself imposes steep tariffs on products like tobacco (350 per cent) and uses complex non-ad valorem duties to shield its farm sector — a reality often ignored in trade talks,” he said.
