India won't compromise on farmers' interests: Agri minister amid US tariffs

Talks between India and the US on an interim trade deal fell through last month, after five rounds of talks, due to disagreements over imports of American dairy products and GM crops

Union Agriculture Minister Shivraj Singh Chouhan on Monday stated that India has resisted demands to allow imports of agricultural produce amid the imposition of tariffs by the United States (US). Speaking at the 12th convocation ceremony of the Indian Institute of Science Education and Research, he emphasised that the government’s decisions prioritise the interests of farmers and fishermen, as quoted by news agency PTI.

 

Chouhan remarked, "The world (read US) said you agree with us. They wanted us to open our doors for their agricultural produce. They farm on hectares of land with genetically modified (GM) seeds and get subsidies. Our small farmers couldn't have withstood the competition."

 

He also said that no agreement will be signed against the country's interests. "They (the US) thought we would be scared. But this is today's Bharat, which is brimming with confidence," he added.

 

The context

Talks between India and the US on an interim trade deal collapsed last month, after five rounds of talks, due to disagreements over imports of American dairy products and GM crops.

 

Since then, the US President Donald Trump-led administration has imposed a whopping 50 per cent tariff on India, which includes a 25 per cent penalty for importing Russian oil (effective from August 27).

 

Moreover, the sixth round of talks between the US and India, which were scheduled to take place in New Delhi on August 25, were also called off last week. 

 

Following this, a senior government official told Business Standard last week that India remains cautiously optimistic that a breakthrough on the first tranche of the trade deal could happen by the fall deadline of October-November.

 

“We are eager to catch up and have a deal with the US, at least the first tranche. But we cannot agree on giving market access to genetically modified crops, and cannot reduce automobile tariffs beyond a point. We have drawn that line,” a senior government official told Business Standard.

 

The official also added that the Centre is bracing for the possibility that the agreement may not materialise.