Centre needs to protect farmers from US agri imports: Kerala's agri minister P Prasad
This comes as India is expected to partially open its agricultural sectors owing to US demands to allow genetically modified (GM) products such as soya and to remove regulations preventing US dairy products from entering India.
'Due to India's trade deal with the Association of Southeast Asian Nations (ASEAN) region, farmers involved in rubber farming saw their incomes decline. And the US agreement could greatly harm Kerala's agriculture, as higher imports of soyabean oil will impact Kerala's coconut farmers. Thousands of farmers are actively involved in the coconut‑farming sector,' Prasad said.
In a letter to Commerce and Industry Minister Piyush Goyal, Prasad said Kerala's agriculture, centred on cash crops such as coconut, rubber, pepper, cardamom, tea, and coffee, supports millions of smallholder farmers and that the proposed FTA poses multiple risks, especially to the coconut‑oil market.
'Imports of cheaper, subsidised US soybean oil (with US subsidies exceeding 80 per cent of production value for certain commodities) could destabilise Kerala's coconut‑oil market, exacerbating challenges for farmers facing low productivity and high input costs. Imports of low‑cost synthetic rubber would severely impact Kerala's natural‑rubber farmers, a significant portion of the state's agrarian workforce,' Prasad wrote.
'NITI Aayog is saying that there is no problem in opening up the agriculture market. But what about our coconut, poultry and dairy farmers? The US is looking for markets for its goods and the Indian Government is willing to open up. But if you do, you have to protect the farmers,' the minister told this paper.
Prasad said that lakhs of farmers involved in natural and organic farming are particularly vulnerable to the entry of GM products.
'Agriculture is a state subject and states should have been consulted before negotiating the opening of the agriculture sector. It is the duty of the central government to discuss the issue with the states, which they are not ready to do,' Prasad said.
In the letter, Prasad noted that US agriculture, characterised by large‑scale mechanisation and substantial subsidies, contrasts sharply with India's smallholder‑dominated system, which supports over 700 million people.
'India's tariff structure (0 per cent to 150 per cent) is a critical tool to manage price volatility and protect rural incomes, unlike the US, which uses steep duties (for example, 350 per cent on tobacco) to shield its farm sector. Tariff reductions would expose Kerala's farmers to unfair competition and dismantle local production systems,' he said.
Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, covering policy issues related to trade, commerce, and banking. He has over five years of experience and has previously worked with Mint, CNBC-TV18, and other news outlets. ... Read More
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