Farmers' Protest Against Proposed India-US Free Trade Agreement: Concerns and Policy Implications

Farmer organizations, including the Samyukta Kisan Morcha (SKM), have recently intensified their opposition to a proposed India-US Free Trade Agreement (FTA). The core of the protest lies in the apprehension that the agreement may mandate a reduction in import duties on agricultural and dairy products. Protesters argue that such a move would create an unlevel playing field, exposing India’s small and marginal farmers to competition from highly subsidized, large-scale American agribusinesses. From an economic perspective, the concerns are multifaceted. Indian agriculture is characterized by small landholdings and a reliance on traditional farming methods, whereas the US agricultural sector is capital-intensive and heavily supported by government subsidies. Critics of the proposed FTA fear that a surge in cheaper imports could depress domestic prices, rendering local production unviable and threatening the food security of millions. Furthermore, the dairy sector, which is a critical source of supplementary income for rural households, is particularly vulnerable to the influx of foreign dairy products, which could undermine the domestic cooperative model.