India-US Trade Deal: Concerns Rise for Farmers & Agri Sector | Modi Govt Responds
- New Delhi – A recently finalized trade deal between India and the United States has elicited mixed reactions, bringing relief to agricultural and seafood exporters while simultaneously raising...
- Seafood exporters are particularly optimistic about the deal.
- However, the agreement has triggered protests from farmer groups.
India-U.S. Trade Deal Sparks Relief for Exporters, Concern for Farmers
New Delhi – A recently finalized trade deal between India and the United States has elicited mixed reactions, bringing relief to agricultural and seafood exporters while simultaneously raising concerns among farmers who fear increased competition from American crops. The agreement, reached on , involves the U.S. Cutting tariffs on Indian goods to 18% from 50% in exchange for India halting purchases of Russian oil and lowering trade barriers.
Seafood exporters are particularly optimistic about the deal. Alex Ninan of the Seafood Exporters Association of India (SEAI) stated, “We are back in the business now.” From April to November 2025, seafood exports had experienced a decline, dropping 6.3% in value and almost 15% in quantity, attributed to high U.S. Tariffs of 50% imposed from August 2025. SEAI president G. Pawan Kumar expressed confidence that the reduced tariffs will restore export volumes to previous levels.
However, the agreement has triggered protests from farmer groups. The Samyukt Kisan Morcha (SKM), an umbrella organization of farm outfits, has condemned the deal as a “betrayal of the people” and a “surrender to the pressure of U.S. Imperialism.” They argue that allowing zero percent import tariffs on U.S. Goods will “devastate Indian farmers.” The SKM also reminded Prime Minister Narendra Modi of his statement, where he pledged to “personally pay a heavy price to protect the interests of the farmers.”
Concerns center around potential imports of crops such as soybean, cotton, maize, and wheat. Despite these anxieties, Union Commerce Minister Piyush Goyal assured the public on , that the interests of sensitive sectors like agriculture and dairy have been fully protected within the agreement.
India currently exports approximately USD 3.4 billion worth of agricultural goods to the U.S. Annually, while imports from the American market total around USD 2.1 billion, resulting in a trade surplus of roughly USD 1.3 billion. A government official, speaking anonymously, indicated that the approach to agricultural imports remains cautious, adhering to India’s established Free Trade Agreement (FTA) template, which prioritizes protection for sensitive farm products.
According to the official, only agricultural items considered “least sensitive” will be granted immediate duty-free access – those already offered to most of India’s FTA partners, including the United Kingdom. India has committed to purchasing $100 billion worth of U.S. Products annually for the next five years, encompassing aircraft, technology items, precious gems, nuclear products, and agricultural goods.
While the finer details of the deal remain unavailable, sources indicate that it maintains protection on genetically modified products, maize, soya meal, while providing quota access for cotton, pulses, and other items. Data suggests that U.S. Farm exports to India were already increasing even before the agreement was finalized.
Farmers in Punjab have also voiced their opposition, planning mega protests against the trade deal. The concerns reflect a broader anxiety about the potential impact on domestic agricultural markets and the livelihoods of Indian farmers.