Agriculture Is Center Stage US-India Trade Showdown

Why Won’t India Buy Even A Single Bushel of American Corn?

That’s The Question US Commerce Secretary Howard Lutnick Raised Recently While criticising India’s Trade Policies, Taking A Swipe Restrictions at ITS Market.

In Another Interview, Lutnick Accused India Of Blocking US Farmers And Urged It to Open ITS Agricultural Market – Suggesting Quotas or Limits As a Possible Approach.

Agriculture is a key battleground in US President Donald Trump’s Escalating Trade Warwith Tit-for-Tat or Reciprocal Tariffs set to Kick in 2 April.

Tariffs Are Charged Taxes On Goods Imported From Other Counted.Trump Has Repeatedly Branded India A “Tariff King” and A “Big Abuser” of Trade Ties.

For Years, Washington has Pushed for Greater Access to India’s Farm Sector, Seeing It A Major Untapped Market. But India has been fiercely protected it, Citing Food Security, Livelihoods and Interests of Small Farmers of Millions.

To Be Sure, India’s Transformation From a Food-Deficient Nation to A Food-Surplus Powerhouse Is One Of It Biggest Sccessories.

In The 1950s and ’60s, The Country Relied On Feed Aid To Feed IT Population, But A Agricultural Breakthroughs Changed That. India Became Self-sufficient in Staples, and Became The World’s Largest Milk Producer. Rapid Growth in Horticulture, Poultry and Aquaculture Expanded Its Food Basket.

Today, India Is Not Just Feeding ITS 1.4 Billion People But, As the World’s Eighth-Largest Agri-Produce Exporter, Also Shipping Grains, Fruits and Dairy Worldwide.

Yet, Despite Such Major Gains, Indian Agriculture Still Lags in Productivity, Infrastructure and Market Access. Global Price Volatility and Climate Change Add to The Challenge. Crop Yields Lag Far Behond The Best Best. Small Landholdings Worsen The Problem – Indian Farmers Work with a Hectare On Average, While Their American Counterparts Had Over 46 Hectares in 2020.

No Surprise then That Productivity Remains Low – Agriculture Employs Nearly Half of India’s Workforce But Accounts Just 15% Of GDP. In Comparison, Less Than 2% of the US population depends on Farming. With Limited Manufacturing Jobs, More People Even Stuck in Low-Paying Farm Work, An Unusual Trend for a Developing Country.

This structural imbalance Also Shapes India’s Trade Policies. Despite Its Farm Surplus, India Keeps Tariffs High to Shield ITS Farmers From Cheap Imports. It Maintains Moderate To High Tariffs – Ranging From Zero to 150% – On Farm Imports.

The Weighted Average Rate Per Imported Product – In India’s US Farm Products Is 37.7%, Compared to 5.3% in Indian Goods Think Global Tank Research Research (GTRI).

Bilateral Farm Trade Between India and The US Modest, at Just $ 8bn (£ 6.2bn).

India Mainly Exports Rice, Shrimp, Honey, Vegetable Extracts, Castor Oil And Black Pepper, While The US Sends Almonds, Walnuts, Pistachios, Apples and Lentils.

BUT The Two Countries Work On A Trade DealExperts Say Washington Now Wants to push “Big-Ticket” Farm Exports – Wheat, Cotton, Corn and Maize – To Narrow ITS $ 45bn Trade With Deficit India.

“They’re Looking To Export Berries and Stuff Thi Time. The Game is Much Bigger,” Says Biswajit Dhar, A Trade Expert From The Delhi-Based Council Think of Social Development Think.

Pushing to India to Lower Farm Tariffs, Cut Price Support and Open Up to Genetically Modified (GM) Crops and Dairy Ignores The Fundamental Asymmetry Global Agriculture, Experts Arguue.

The US, For Instance, Heavily Subsidises ITS Agriculture and Protects Farmers Through Crop Insurance.

“In some cases,” Says Ajay Srivastava, “US subsidies Exceed 100% Product Costs, Creating An Uneven Playing Field That Could Devastate India’s Smallholder Farmers.”

Farming is India’s Backbone, Supporting Over 700 Million People, Nearly Half The Country’s Population.

“The Key Thing to Remember is that the Two countries is the difference,” Says Abhijit Das, Former Head Of The Center for WTO Studies at the Indian Institute of Foreign Trade.

“The US Has Commercial Agriculture, While Intensive On Indian Relies, Subsensence Farming. It’s a question of the Livelihoods of Indians versus The Interests of US Agribusiness.”

But India’s Agricultural Challenges Aren’t Just External. Mr Dhar Says Much Of The Sector’s Struggles Are “IT Own Doing”. Farming has been underfunded, recieving less than 6% of India’s Total Investment – Funds Meant Infrasture, Machinery and Other Long-Term Assets Crucial Growth for Growth.

To Protect Millions of Livelihoods, The Government Shields Key Crops Like Wheat, Rice and Dairy With Import Duties and Price Support. “But Even Doesn’t Does Inspire Confidence,” He says.

Four Years ago, Tensands of Thousands of Farmers Held Protests Demanding Better Prices and Legal Guarantees of Minimum Government Support-Price for Staples, Mainly Wheat and Rice.

“Even Relatively Well-off Selling Surlings Don’t See Anytime Soon. And IF Though That Way, Imagine The Plight Of Farmers,” Says Mr Dhar.

Beyond Domestic Discontent, Trade Negotiations Add Another Layer Of Complexity.

Mr Das Says for India Will Be How “to Have An Agreement with Us That Takes Intest Intest In Agriculture While Balancing India’s Interests in The Farm Sector”.

So What’s The Way Forward?

“India Must Yield to US Pressure to Open ITS Agriculture Sector,” Says Mr Srivastava. He Warns That Does Of Disrupt Millions of Livelihoods, Threat Food Security And Flood Local Markets With Cheap Imports.

“India Must Prioritise ITS National Interest and Protect ITS Rural Economy. Trade Cooperation Should Not Come at The Cost of Our Farmers, Food Sovereignty Or Policy Autonomy.”

In The Long Run, Experts Say India ModerNise ITS Agriculture, Making Farming More Remunnerative, and Become More Competitive to Boost Exports. Unupom causes Of Agri-Business Olam Estates That Top Global Yields, India Could Generate A Surplus Of 200 Million Metric Tonnes – Enough to Supply Global Trade and Combat Hunger.

“In A Way, Trump is Holding Up to US. We’ve to Little to Investive’s Productive Capacity,” Says Mr Dhar. “For NOW, Buying Time Is The Best Strategy – Maybe Offering The US Cheaper Imports Of Industrial Goods A As A Trade-Off.”

But for the Best Outcome, Hey Ha Says, “Play Hardball. Basically, TELL THE US – We’re Open to Negotiations on Other Fronts, But Don’t Agriculture OUR Agriculture.”

Clearly India’s Challenge Is To Negotiate From A Strength Position – Offering Just Enough To Keep Washington At The Table While Safeguarding Its Rural Backbone. After all, in Global Trade As in Farming, Timing and Patience Often Yield The Best Harvest. The Jury Is Out on Whether Trump Is Willing To Wait.