Despite repeated assurances from the government, concerns continue to be raised over certain provisions of the proposed Indo-US trade agreement, particularly relating to agriculture. Experts have pointed out that several items listed for import are already available in India, while the use of vague terminology makes the deal’s implications unclear.
Commerce Minister Piyush Goyal on Saturday said India has protected its agriculture and dairy sectors under the proposed agreement with the United States. However, agriculture experts argue that the fine print of the deal raises serious apprehensions.
Agriculture expert Prof Sudhir Panwar said the agreement has triggered concern despite government clarifications. “There is genuine apprehension about the fine print of trade agreements. If agricultural commodities are imported at zero duty, they could flood the Indian market and adversely affect farmers’ economic interests,” he said.
He added that vague terms such as dried distillers’ grains (DDGs), fresh and processed fruits, tree nuts and “additional products” make the deal suspicious. “The fact is that all these items are already available in India. Apple growers, in particular, have reason to be concerned,” Panwar said.
According to the joint statement, India will eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural products, including DDGs, red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine and spirits, and additional products.
DDGs are a by-product of ethanol production from corn and are widely used as high-protein animal feed. Under the agreement, tariff reductions on DDGs and similar products are expected to boost US agricultural exports to India as part of a reciprocal trade framework.
Addressing a press conference, Goyal said India has safeguarded its sensitive sectors and has not extended any duty concessions in these areas. He listed agricultural goods, meat, poultry, all dairy products, genetically modified food products, soy meal, maize, cereals and millets such as jowar, bajra, ragi, kodo and amaranth as protected items.
Fruits including bananas, strawberries, cherries and citrus fruits have also been excluded, he said.
Other protected products include green peas, kabuli chana, moong, oilseeds, animal feed, groundnuts, honey, malt and malt extracts, non-alcoholic beverages, flour and meals, starch, essential oils, fuel ethanol and tobacco. “It is truly an agreement that will give huge advantages to farmers, fishermen and industry in India,” Goyal said.
The Opposition Congress, however, described the deal as a “surrender signed under pressure.” Party spokesperson Pawan Khera said the agreement compromises the interests of farmers, the middle class and small and medium enterprises. He warned that slashing import tariffs on US agricultural and food products would “break the backbone of Indian farmers” by allowing American producers access to India’s vast market.