Indian farmers took part in nationwide union protests on Thursday, saying they fear the consequences of New Delhi's new trade pact with the US, which will result in duty-free access for American products to the Indian market.

Agriculture provides a livelihood for more than 40 percent of India's 1.4 billion people, and opening the sector to foreign competition has long been politically sensitive.

India signed an interim framework trade deal with the US last week, with the formal pact expected to be finalized by March. The US cut a 50% tariff on Indian goods to 18%, while India agreed to eliminate or reduce tariffs on all US industrial goods and a wide range of agricultural and food products.

While details of the deal have not yet been announced, farmers fear they will be harmed by cheap and subsidized American products, which will threaten their livelihoods.

Rakesh Tikait, national spokesperson of the Bharatiya Kisan Union (Indian Farmers Union), said the government had not held discussions with farmers before agreeing to the deal.

The BKU and other rural platforms have joined a broader strike held across India by major unions against new labor codes — which have been criticized for weakening workers' rights and reducing job security — as they saw it as a common cause with other workers.

"We are protesting against the US-India trade deal, which we fear goes against the broader interests of Indian farmers. If US agricultural goods, fishery products and dairy products enter the Indian market, Indian farmers cannot withstand this onslaught and will be devastated," Tikait told Arab News from a protest site in western Uttar Pradesh.

"We want this agreement to be changed and made in favor of farmers. Otherwise, we will oppose it tooth and nail."

According to Rajveer Singh Jadaun, president of the Uttar Pradesh farmers' union, the agriculture sector is facing an "existential threat" in a country that historically imposes tariffs of 30-150 percent on imports to protect farmers.

With tariffs reduced or eliminated and those imposed on Indian products higher than before, protesting farmers are convinced that there is no level playing field.

"The agreement is giving a zero percent tariff to US agricultural and other products and we are being charged an 18 percent tariff, which is higher than the 3 percent in the past," Jadaun said.

“American farmers are celebrating the deal — that means there is something fishy… The government is speaking with many voices and that creates further confusion. I would like the government to clarify its position and make everything clear.”

Indian corn and soybean prices have fallen by 4 and 10 percent, respectively, following the announcement of the deal.

Krishna Prasad, the finance secretary of the All India Farmers' Union, predicted that prices of other products could soon fall as well.

"They are bringing fresh and processed fruits. If apples are brought at 75 rupees ($1) per kilogram to India from America, then the apple economy in Jammu and Kashmir and Himachal Pradesh will collapse," he said.

“In America, there are only 1.7 million farmers, but in India there are 166 million farming families. And in America, a farming family gets a subsidy of 60 lakh rupees ($73,000) per year. In India, it is almost 27,000 rupees ($330) per year. There is no level playing field. Indian farmers cannot compete with these highly motorized or mechanized farms of America.”

While Commerce Minister Piyush Goyal addressed the protesters — saying they “will not suffer any harm” as the trade deal is “fair, equitable and balanced” — Prasad warned that they were prepared to stage a strike similar to the 2020-21 protest, in which they opposed three agricultural acts that sought to open up the sector to corporates.

The strike, which lasted nearly 18 months and involved millions of protesters, was India's largest and longest in recent memory. It forced the government to repeal the controversial legislation.

"America will dictate policy towards India, so the sovereignty of the Indian people and the country is being completely compromised," Prasad said.

“We think this is a total surrender of Indian farmers and Indian agriculture to imperialist and multinational corporations. We cannot accept it. We will stop it. We will take to the streets and build this agitation bigger than the farmers’ agitation of 2021.”

© BalkansWeb
To become part of the group "Balkanweb" just click: Join Group and your request will be approved immediately. Groups Balkanweb