Is India US Trade Pact a Threat to Agriculture Sector Kejriwal Raises Alarm

In Shorts

• Arvind Kejriwal claims India US trade pact compromises agricultural interests
• Lower import duties on US cotton may hurt Indian farmers’ competitiveness
• Export costs could rise, threatening farm based trade with the United States

Aam Aadmi Party national convenor Arvind Kejriwal has raised serious concerns over the interim trade agreement between India and the United States, stating that the deal could weaken India’s agriculture sector and adversely affect farmers across the country.

Speaking at a recent press briefing, Kejriwal alleged that the agreement marks an unprecedented compromise in protecting domestic agricultural interests. He warned that Indian agricultural exports may gradually lose their competitive edge in the American market due to tariff changes under the proposed arrangement. According to reports, Indian goods exported to the US may face tariffs of up to 18 percent, potentially making them more expensive for buyers overseas and reducing demand in the long term.

The AAP leader further highlighted concerns about reduced duties on American agricultural imports entering India. He pointed out that cotton imported from the US could now enter the Indian market at significantly lower or even zero tariffs. This, he said, would create intense price competition for domestic producers, making it difficult for Indian farmers to sell their produce both locally and internationally.

The development has triggered political reactions as well as resistance from farmer organisations and opposition parties. Several groups have expressed apprehension that lowering import tariffs on US agricultural commodities could increase the inflow of subsidised farm products into India, ultimately impacting rural incomes and domestic crop prices.

While the government has maintained that key staples such as rice, wheat and dairy products remain protected under the framework, critics argue that differences in subsidies and infrastructure between the two nations could still place Indian farmers at a disadvantage in the long run.

With agriculture continuing to support millions of livelihoods in India, the interim trade pact has now become a focal point of political and economic debate, particularly regarding its potential impact on market competitiveness and the future of farm based exports.