
Farmer groups warn that opening India’s dairy and crop markets to U.S. imports could undercut domestic producers and rural livelihoods.
A major Indian farming organisation, the Thalavady Farmers Association, has formally appealed to the central government to exclude agriculture and dairy from a proposed India–U.S. Free Trade Agreement (FTA), arguing that market liberalisation in these sectors could devastate local producers. Their concerns centre on potential influxes of duty-free or low-tariff imports of key commodities such as wheat, soybeans, canola, milk and dairy products, which they say could undercut domestic prices and erode farm incomes.
The farmers’ body emphasised that India’s dairy sector is one of the world’s largest, underpinned predominantly by small and marginal producers, and that cheap, subsidised U.S. agricultural goods could severely disrupt rural economies. They warned that domestic milk and dairy pricing structures are vulnerable to external competition, particularly given the scale and subsidisation of American agricultural exports, which enjoy advantages in efficiency and processing scale.
In addition to dairy, the group raised alarm over the potential import of crops used in ethanol production, suggesting that opening these markets could further depress domestic commodity values. Many farmers are already operating on thin margins, and the spectre of cheaper foreign grain and oilseed products threatens to compound existing financial pressures on rural producers.
The appeal reflects a broader domestic resistance to liberalising sensitive agricultural segments in India’s trade negotiations with the United States, where agriculture and dairy repeatedly emerge as contentious issues. Stakeholders including dairy cooperatives and farm organisations have consistently opposed market access concessions that could give an edge to highly subsidised U.S. imports, arguing that such moves would weaken India’s food security and rural employment base.
By urging that future trade agreements similarly exclude agriculture and dairy from tariff reductions or concessional terms, the Thalavady Farmers Association has signalled that rural voices will remain a potent force in shaping India’s trade policy. For the international dairy community — especially U.S. exporters eyeing Indian market access — this stance highlights the political and economic sensitivities that continue to influence bilateral trade discussions.
Source: FNB News — https://www.fnbnews.com/Top-News/indian-farmers-demand-dairy-be-kept-out-of-indiaus-trade-agreement-85727
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