Farmers and major trade unions plan nationwide protests, demanding the deal be scrapped.
Tariff cuts on US farm goods like DDGS, nuts, fruits and soybean oil have triggered fears of price crashes for Indian farmers.
The government says key sectors are safeguarded; critics argue the rural economy faces long-term risks.
Farmer groups and trade unions have called for a nationwide Bharat Bandh on February 12 to oppose the India–US interim trade deal, which, according to them, could hurt Indian agriculture and rural livelihoods. The Samyukta Kisan Morcha (SKM), along with unions such as the All India Kisan Sabha (AIKS), INTUC, AITUC, and CITU, plan rallies and shutdowns across the country, warning that cheaper US imports may undercut domestic farmers. The nationwide bandh is part of a broader protest campaign this month.
Several hyperlocal (district-level) protests have also been organised across Maharashtra and other parts of India. Thousands of farmers and workers are expected to protest on February 12.
The proposed India–US trade deal has triggered concerns among farmer groups in India, who fear that easing import restrictions could expose small and marginal farmers to competition from heavily subsidised American agricultural products.
The trade unions argue that the trade deal could potentially depress domestic prices and incomes, according to farmers’ unions; however, the government maintains that sensitive sectors such as rice, wheat, and dairy have been safeguarded and excluded from major concessions.
Samyukta Kisan Morcha, a nationwide umbrella body of farmers’ unions and collectives, has criticised the current framework for the trade agreement with the USA.
Samyukta Kisan Morcha (SKM), in its public statement, said that Indian industry, agriculture, and dairy sectors are now under grave threat from cheap imports that will be dumped into Indian markets.
“The Union Budget presented on February 1 has already shown declining agricultural growth (3.1%). MSP is continuously below even the A2 costs. Market prices are below MSP rates, while the cost of urea and DAP is being raised. Hence, peasant debt is rising,” the statement said.
Dr. Ajit Nawale of CITU said that the Indo-US trade deal will certainly affect Indian farmers, especially soybean, maize, rice, and mustard growers.
“Though the government says it won’t import soybean, it will import soy products. Therefore, farmers and workers in Maharashtra will jointly protest on February 12. Our demands also include restoration of MNREGA and repealing the four labour codes,” he said.
Trade unions have demanded that Prime Minister Modi desist from signing the US trade deal or face massive, pan-India struggles.
Under the new Indo-US interim trade agreement, “India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of U.S. food and agricultural products, including dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products,” according to the joint statement of India and the US published by PIB.
However, the joint statement shared by the White House says, “India will agree to reduce or eliminate import duties on a range of U.S. agricultural products, particularly those considered less sensitive for domestic producers. These include animal feed ingredients such as dried distillers’ grains with solubles (DDGS) and red sorghum; tree nuts like almonds, pistachios, and walnuts; and fresh and processed fruits (such as apples and other fruits) — often under quota or minimum price provisions. The deal also extends tariff cuts to soybean oil, wine and spirits, and other agricultural and food-related items from the United States.”
The key terms of the trade deal also mention that the United States will apply a reciprocal tariff rate of 18 percent under the Executive Order of April 2, 2025 (“Regulating Imports With a Reciprocal Tariff to Rectify Trade Practices”) on originating goods of India, including textiles and apparel, leather and footwear, plastic and rubber, organic chemicals, home décor, artisanal products, and certain machinery, and, subject to the successful conclusion of the interim agreement, will remove the reciprocal tariff on a wide range of goods identified in the Potential Tariff Adjustments for Aligned Partners.
Critics argue that even limited market access for US farm goods could destabilise the domestic agro-economy and deepen rural distress. The trade deal is also expected to open up export opportunities for a few Indian farm products such as spices, tea, and coffee.
“We have appealed to all political parties and mass and class movements to rally to prevent the government’s sell-out of Indian farmers and agriculture to MNCs. The framework for the interim agreement on USA–India trade outlining key terms highlights total surrender before US agriculture MNC giants by the RSS-BJP-led Narendra Modi government, which has already welcomed this framework,” said Rajan Kshirsagar, president of the All India Kisan Sabha.
As per the PIB press note, maize will be sold as dried distillers’ grain (DDG), along with sorghum, as animal feed. Control of the animal feed market will be completely monopolised by US companies.
The USA is already exporting crops such as maize, soybean, and cotton to India, and US wheat is being exported at Rs 18.50 per kg, which, critics argue, will hurt Indian farmers if it is allowed to flood the Indian market. There will be freedom to import GM foods and GM seeds, which, they claim, will ruin natural soil fertility apart from damaging cereal, pulse, and oilseed markets. Soy oil is also targeted for import.
Ethanol, too, will be imported freely. The import of fresh fruits such as apples, pineapples, and coconuts, and dry fruits including cashews, will ruin farmers in Jammu and Kashmir, Himachal Pradesh, Arunachal Pradesh, and other northeastern states — another concern echoed by farmers’ unions.
Sominath Gholwe, a Latur-based farmer and scholar of agricultural economics, told Outlook, “The Union government is only thinking about the middle class. It will allow US products into the Indian market without tariffs, and when it comes to exporting our products to the USA, we’ll have to pay tariffs. Naturally, it will impact the demand-supply cycle of our products, and farmers will be severely affected.”
“The government says it won’t export GM soybean, but other soy products will be imported. This means the government is fooling farmers. When everything else — even animal feed — will be imported from the USA, it will affect our agricultural markets,” he added.
Gholwe also highlighted that when Indian farmers are affected, their products will become expensive and hence less in demand. They won’t be able to reach the break-even point. If farmers are affected, it will impact the livelihoods of Indian peasants.
Gholwe believes that this trade deal will not only impact farmers but the entire rural economy. “This deal and policy will have a long-term impact that will push generations into debt and poverty,” he said.
