As India and the US inch closer to a free trade agreement, the Global Trade Research Initiative cautioned that conceding market access in agriculture could have grave consequences for India's food security, rural livelihoods and trade stability.
In a brief, the GTRI highlighted that the US is pushing for tariff cuts on key farm exports like rice, dairy, poultry, corn, almonds, apples and genetically modified soy. But these products benefit from deep subsidies, giving American producers an unfair edge over Indian farmers, most of whom operate on small, subsistence holdings, according to Ajay Srivastava, founder of the GTRI.
India's farm tariffs have historically acted as a buffer against global price volatility. For example, when global wheat prices crashed in 2014–16, Indian tariffs helped shield local producers. Without these protections, cheap imports can flood the market, forcing farmers to abandon cultivation, only for India to face costly imports during future price spikes.
India must also continue its current restrictions on GM foods and dairy imports, particularly those involving animals fed on meat or blood, a practice culturally and ethically unacceptable in India, the GTRI said.
The GTRI also warned that importing GM soymeal under "controlled models" could still lead to contamination of domestic crops, risking India's exports to GM-sensitive markets like the EU.
The GTRI underscored that retaining tariff flexibility is not protectionism, but a necessary tool to protect over 70 crore rural livelihoods. It adds that the US itself uses high tariffs and complex barriers to protect its own agriculture, including 350% tariffs on some products.
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