A core point of contention in the ongoing trade dispute is the vast difference in farming practices between the two countries. Chouhan highlighted that U.S. farmers operate on a scale of thousands of hectares and use genetically modified (GM) seeds, which lowers their cost of production. In stark contrast, Indian farmers typically have very small landholdings, often less than three acres, and higher production costs. This disparity, the minister argued, makes competition unfair and would severely harm Indian farmers if the market were opened.

Chouhan also addressed the broader economic implications, warning that allowing cheap foreign agricultural products to flood the Indian market would drive down local prices, preventing domestic farmers from getting a fair return. He stressed that India’s large population of 144 crore citizens is a strength, not a weakness, as it provides a robust domestic market that can consume its own produce. This focus on self-reliance is a key part of India’s strategy to navigate global trade disputes.

The minister’s comments reflect the breakdown in recent bilateral trade talks between India and the U.S. The negotiations failed after five rounds, primarily due to disagreements over market access for U.S. agricultural products. Following the collapse of these talks, the U.S. imposed a 50% tariff on some Indian goods. However, a senior government official cited in the article stated that India remains “cautiously optimistic” that a breakthrough could still be achieved on a partial trade deal.