Context
Amid US Tariffs, Prime Minister Modi said that the government would by no means compromise the pursuits of India’s farmers, farm animals rearers and fisherfolk.
Background
- Trade negotiations between India and the USA have established, with the United States (underneath Donald Trump administration) pressuring India to:
- Open its domestic market to American farm produce.
- Relax regulations on certain imports.
- India’s hesitation stems from domestic livelihood concerns.
Related Concerns
- Agricultural Sector: US is pushing India for importing genetically changed (GM) soyabean and maize imports.
- Both plants are broadly grown in India – on some 13 million and 12 million hectares respectively.
- India fears that it is able to motivate domestic price crash and unfair opposition since GM food crop cultivation is banned in India.
- Ethanol Imports: The US also needs India to allow imports of ethanol to be used as bio-gas.
- Currently, handiest ethanol consisting of regionally grown sugarcane, maize, and rice is used for blending up to 20% with petrol.
- The import from the United States may lessen demand for regionally produced ethanol and will ultimately harm India’s sugarcane farmers.
- Dairy Sector: There is an opposition from the Indian dairy industry to the imports of milk powder, butter oil, and cheese under any free trade agreement, whether or not with America, the European Union, New Zealand, or Australia.
- India levies 30% import duty on cheese, 40% on butter, and 60% on milk powder.
- There is likewise the requirement that all imported dairy products should be derived from animals not fed on any method produced from the internal organs, bone or tissues of animals.
- Fisheries Sector: India’s seafood exports to the US have been valued at $2.48 billion in 2024, US is a chief market, the state-of-the-art tariff of 50% can hugely impact aqua farmers in states which includes Andhra Pradesh, Gujarat, Odisha, and Tamil Nadu.
- This is more so when much lower tariffs of 10-20% had been put on competing countries including Chile, Ecuador, Indonesia, and Vietnam.
India’s Stand
- Protection of Livelihoods: Safeguard pastimes of farmers, fisherfolk, and dairy producers from cheaper imports and price volatility.
- Food & Biosafety Norms: Maintain ban on GM food crop cultivation and imports in line with domestic rules and consumer safety concerns.
- Cultural & Religious Considerations: Uphold restrictions on dairy imports from animals fed with animal-derived products.
- Self-Reliance in Key Commodities: Promote home ethanol production to aid the rural economy and avoid dependence on imports.
- Trade Balance Concerns: Resist tariff concessions in sensitive sectors wherein India is vulnerable to import surges.
Way Ahead
- Balanced Trade Negotiations: Engage in calibrated commencing of markets, ensuring sensitive sectors like agriculture and dairy are blanketed even as exploring concessions in much less-sensitive regions.
- Diversification of Export Markets: India can try to reduce over-dependence on the US for seafood and other exports by tapping new markets in East Asia, Middle East, and Africa.
- Safeguard Livelihoods: Continue high import duties and non-tariff obstacles for dairy and other prone sectors till home manufacturers are aggressive.
Source: The Hindu
Mains PYQ
Q. Given the vulnerability of Indian agriculture to vagaries of nature, discuss the need for crop insurance and bring out the salient features of the Pradhan Mantri Fasal Bima Yojana (PMFBY). (2016)
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