What are the concerns of Indian farmers about the effects of Indo-US BTA

The story so far: On February 7 this year, the United States and India announced a framework for an interim agreement on mutually beneficial trade and committed to broader negotiations on a 2025 US-India Bilateral Trade Agreement (BTA), which included additional commitments on market access and support for more resilient supply chains.

As US Trade Representative Jamieson Geer wrapped up his two-day visit to New Delhi on June 24, after several meetings with Commerce Minister Piyush Goyal to review the core elements of the interim trade deal as well as the broader BTA, farm groups are once again at the fore to voice their anxieties through demonstrations, actions and protests.

Samyukt Kisan Morcha (SKM), an umbrella organization of about 500 farmers’ associations, Samyukta Kisan Morcha (Non-Political), Kisan Mazdoor Morcha (KMM) and Bhartiya Kisan Union (Chaduni), among other farmers’ organizations, are raising their voice to express their concerns about the adverse effects of the BTA.

What the BTA says:

Key terms of the interim agreement on the agriculture and food sector included, among others, that India would eliminate or reduce tariffs on all US manufactured goods and a wide range of US food and agricultural products, including distillers’ dried grains (DDG), red sorghum for animal feed, nuts, fresh and processed fruits, soybean oil, wine and spirits, and other products. India recognizes the importance of working together to address long-term issues and has also agreed to address long-standing non-tariff barriers to trade in US food and agricultural products. These dates have raised concerns among farmers and gardeners about the adverse impact on their livelihoods.

Why farmers are worried:

Farmers fear the proposed trade deal could damage Indian agriculture, as opening Indian agricultural markets to heavily subsidized American products would make it difficult for farmers across the country to compete.

Cheaper imports of feed substitutes such as DDGS and soybean oil could depress corn and soybean prices. India is almost self-sufficient in cotton, with twice the production of the US. Any removal of the import duty on cotton will sink domestic cotton prices. Cotton imports are regulated by quotas, but any relaxation of cotton imports from the US will be disastrous for farmers in states like Gujarat, Maharashtra, Punjab and Haryana, especially after the sharp fall in domestic prices. Easing some non-tariff barriers could also increase the risk of the entry of genetically modified organisms (GMO) material and the spread of new pests, plant diseases and invasive weeds. Such developments may pose a serious threat to the country’s agricultural ecosystem.

Agriculture in the United States operates on the basis of large land holdings, higher subsidies, and economies of scale, which allow producers to export at lower prices. In such a scenario, it will be extremely difficult for farmers in India to compete with US agricultural products. The US is the second largest producer of soybeans after Brazil, and 96% is GM soybeans. Import of soybean oil and DDG for animal feed will seriously affect Indian soybean farmers and a 40 lakh crore industry. Agriculture authorities say the deal opens the door for foreign companies to dominate the agricultural sector.

Fruit growers are worried about:

Apple growers in Kashmir, Himachal Pradesh and Uttarakhand are facing growing anxiety over the BTA. In Kashmir, 15 thousand families are associated with the apple trade, generating ₹30,000 crore annually. Himachal Pradesh produces apples worth ₹5,000 to ₹6,000 crore annually and engages more than 1.5 million families in the sector. Fruit growers fear that cheap imports will lead to the collapse of the domestic apple industry.

Kuldeep Singh Rathore, Congress MLA from Theog constituency in Shimla district, brought a resolution that was unanimously passed in the Himachal Pradesh state assembly in March this year, demanding that the Union government protect the state’s apple growers from the effects of trade deals. He noted that for India’s small and marginal apple growers, the trade deals could prove devastating as the average apple grower’s land in the state is just 1 to 2 acres, which are small family orchards, totally dependent on seasonal income.

“Now compare that to the state of Washington in the United States – where most of America’s apples are exported to the world. The average size of an apple orchard there is closer to 100 acres. One hundred acres versus one acre. “This is not a competition. That is structural inequality,” he noted. He added that in the US, apples are grown on high-density clonal rootstocks, yielding 50 to 80 tonnes per hectare, while in Himachal, most of our production still comes from traditional plantation rootstocks, yielding barely 6 to 7 tonnes per hectare.

When it comes to productivity itself, our farmers are at a tenfold disadvantage. The Apple Farmers’ Federation of India (AFFI) noted that Indian orchardists living in precarious conditions with rapidly dwindling government support are being pushed into an unequal battle with heavily subsidized wealthy American farmers and agribusinesses.

The government’s latest proposal:

Following Mr Greer’s latest visit to India, a joint statement on June 24 said both sides had seen significant progress by negotiating teams in recent months and welcomed momentum from successive technical and ministerial-level commitments. “Discussions focused on ways to reach an interim agreement as an important milestone towards a comprehensive BTA. Both sides reaffirmed their commitment to an agreement that is balanced, makes commercial sense and delivers tangible benefits for businesses, farmers, workers and consumers in both countries,” it said.

Published – 25 Jun 2026 13:16 IST