A primary concern for Indian farmers is the potential influx of cheaper produce from the U.S., including items like soy, dairy, wheat, rice, and apples. They fear that such imports would severely erode their already precarious earnings, jeopardizing livelihoods across the vast Indian agricultural landscape. Furthermore, there’s staunch opposition to the entry of genetically modified crops from the U.S. India’s Finance Minister, Nirmala Sitharaman, has explicitly stated that agriculture and dairy represent “very big red lines,” indicating a high degree of caution in these sensitive areas, reflecting the government’s commitment to food sovereignty.

The structural differences between the two nations’ farming systems exacerbate these concerns. Indian farms are typically small, fragmented, and significantly less mechanized compared to the large-scale, highly efficient US farms. This disparity makes it exceptionally difficult for Indian farmers to compete on price if exposed to unrestricted imports, a critical factor for dairy producers and crop farmers alike. The potential for a sudden surge in low-cost imports could disrupt entire regional economies.

Specifically within the dairy sector, India stands as the world’s largest producer of milk. Allowing U.S. milk into this market could trigger a substantial drop in prices, leading to immense losses for millions of Indian dairy farmers. Compounding this economic concern is a strong cultural and religious objection to importing U.S. dairy, primarily due to the American practice of feeding cattle with animal by-products. This unique socio-cultural factor adds another layer of complexity to dairy trade negotiations.