‘If India removes tariffs, then cheap…’: GTRI warns of huge risks to lowering duties on US farm goods amidst trade deal talks; here’s what could go wrong

GTRI cautions that everlasting discount of agricultural tariffs could be each irreversible and strategically unsound. (AI picture)

India-US trade deal talks: Under the proposed India-US trade settlement, India should preserve its agricultural coverage stance, as lowering import duties on US farm merchandise could pose risks to nationwide meals safety, in accordance to GTRI.The Global Trade Research Initiative (GTRI) cautions that everlasting discount of agricultural tariffs within the India-US free trade settlement (FTA) could be each irreversible and strategically unsound.GTRI warns that eliminating tariffs could end in subsidised US grains overwhelming Indian markets throughout world value downturns. Historical proof exhibits that world grain costs plummeted between 2014 and 2016, with wheat costs falling below $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 decrease duties for US farm merchandise could be devastating

As negotiations proceed in Washington, there’s rising strain to cut back tariffs on main US agricultural exports together with rice, dairy, poultry, corn, almonds, apples, and genetically modified soy. American merchandise together with rice, dairy, poultry, and GM soy obtain substantial subsidies, creating an uneven enjoying subject for Indian farmers.Reducing tariffs on US agricultural imports could jeopardise India’s meals safety by subjecting small-scale farmers to subsidised imports and market fluctuations, warns GTRI. India wants to preserve tariff flexibility to safeguard over 700 million rural livelihoods and keep away from earlier trade settlement errors, it says.Ajay Srivastava highlighted that India’s dairy import protocols, notably the stipulation in opposition to feeding animals with meat, blood and inside organs of different animals, successfully prevents US dairy merchandise from coming into the market.The US considers these laws extreme. However, from an Indian perspective there are issues about consuming butter produced from cows which have been fed meat and blood of different 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 stated.A leisure in poultry import laws would severely influence home producers, contemplating India’s disconnected chilly storage infrastructure and insufficient SPS (sanitary and phytosanitary) implementation.Also Read | Trade battle: ‘Not planning to lengthen tariff pause after July 9’, says Donald Trump; India’s trade group extends US keepThe US expresses dissatisfaction with India’s laws on genetically modified (GM) meals, describing them as ambiguous and missing scientific foundation, 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 by means of “controlled” mechanisms, together with coastal crushing of GM soy seeds for meal exports, poses vital risks to India’s agricultural sector.India’s decentralised provide chain infrastructure makes it susceptible to GM traits seeping into home agricultural programs, which could lead to cross-contamination of native crops and negatively influence exports to markets delicate about GM merchandise.The GTRI founder famous that while the US views India’s requirement for non-GM and GM-free certificates throughout 24 merchandise as unwarranted, even for non-commercially modified crops, India maintains this stance to guarantee product traceability and protect shopper belief.Additionally, he identified that substantial subsidies underpin US agricultural exports.In sure years, agricultural subsidies surpassed 50 per cent of manufacturing prices: rice (82 per cent), cotton (74 per cent), canola (61 per cent), wool (215 per cent).The US seeks to export numerous subsidised merchandise to India, together with 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%; particulars right here“If allowed in duty-free, these subsidised goods would undercut Indian producers and distort markets,” he stated, including, “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 within the US operates on company ideas, Indian agriculture stays elementary to individuals’s sustenance.Import duties are essential for shielding small-scale farmers, controlling value fluctuations, and sustaining meals safety.“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 stated.