Kerala’s Agriculture Minister P Prasad has written to Union Commerce Minister Piyush Goyal and Union Agriculture Minister Shivraj Singh Chouhan opposing the proposed India-US Free Trade Agreement (FTA).In his letter, Prasad expressed concern over the US demand for concessions in the dairy and agriculture sectors, stating these could be detrimental to agrarian states like Kerala.
He said the import of US soybean oil, produced with an 80% subsidy on its production value, may destabilise the domestic coconut oil market.
The Minister also warned that imports of low-cost synthetic rubber could adversely affect natural rubber farmers.Highlighting the contrast between agricultural systems, he noted that the US sector is characterised by large-scale mechanisation and subsidies, whereas India’s agriculture is dominated by smallholder farmers.He cited the ASEAN FTA as a cautionary example, where tariff cuts on edible oil, pepper, tea, and coffee led to a price crash and reduced farmer incomes.Prasad also stated that NITI Aayog’s recommendation for duty-free imports of GM soybean and maize contradicts India’s current policy.He further said that GM crops and industrialised feed could threaten Kerala’s agricultural biodiversity and ecological balance.Meanwhile, India’s top trade negotiator extended his stay in Washington as trade talks with the US enter the final phase to seal an interim deal. Sources told CNBC-TV18 that a stalemate persists over the agriculture and dairy sectors. The Trump administration wants to maintain a 10% tariff rate with India, while India is pushing for zero tariffs across several sectors.The US is seeking broad concessions, while India wants to exclude agriculture and dairy from the interim deal to make progress. On steel, the US plans to maintain a 26% tariff on Indian imports, with similar tariffs on other countries. An exemption for India appears unlikely.The Indian delegation, led by Rajesh Agarwal, is continuing talks in Washington. India is also seeking a competitive edge for labour-intensive sectors like textiles to better compete with countries such as Vietnam, Indonesia, and Bangladesh in the US market.
Source link
