The Indian government would prioritise protecting interests of farmers in finalising a trade deal with any country, reiterated agriculture minister Shivraj Singh Chouhan on July 8, as New Delhi is expected to soon sign a mini deal with the US.
Chouhan said that agriculture is the backbone of Indian economy and farmers are the core part of that ecosystem. A decision on trade deal with any country would be taken while ensuring Indian farmers’ interests, he added.
A day earlier, US President Donald Trump said Washington is close to making a deal with India while announcing new tariffs against 14 nations including Myanmar, Cambodia and Thailand, among others. The White House on July 7 also extended the deadline for reciprocal tariffs to August 1 from earlier July 9.
With regards to an India- US trade deal, agriculture—especially genetically modified (GM) crops such as soyabean and maize—and dairy have emerged as contentious issues.
The United States wants greater access for its soyabean and corn, most of whose varieties are genetically modified. India has resisted the demand, which can impact the livelihood of millions of farmers.
The Indian government does not allow production or imports of GM crops in the country.
Moneycontrol had earlier reported that as many as 24 million soya and maize farmers in India could be impacted, if GM imports of the two grains are allowed from the US into the country.
India has, so far, resisted America’s demand for greater access for its GM crops even as New Delhi looks to secure a scaled-down version of a bilateral trade agreement (BTA) before President Donald Trump’s 26 percent reciprocal tariffs kick in. A 10-percent baseline levy is already being imposed on all goods entering American shores.
The Trump administration has repeatedly criticised India for its “high-tariff regime” and has been seeking greater market access for US farm goods. The simple average tariff for agricultural goods in India is 39 percent, higher than the US’s 5 percent.
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