India-US trade deal will boost farmers' incomes, says Piyush Goyal amid criticism: ‘18% tariff to give competitive edge’

Commerce and Industry Minister Piyush Goyal addressed concerns about the impact of the trade deal with the United States on the agricultural sector, saying the US market will provide farmers with much greater value and their incomes will increase.

In an interview with PTI, Goyal assured that the proposed agreement will “ultimately help our farmers,” who already export $55 billion of agricultural and fish products.

He further rejected criticism that India gave more to the US by accepting an 18% tariff on its goods and granting duty-free access. Goyal argued that the proposal will benefit Indian exports by providing them with a competitive edge over higher tariffs on Chinese and other foreign products.

On Saturday, 7 February, the terms of the interim trade agreement were announced, which stated that India will "eliminate or reduce tariffs on all US industrial goods" and on other food and agricultural products. Meanwhile, the US will impose a reciprocal tariff of 18 % on goods from India, such as textiles and apparel, leather and footwear, plastic and rubber, organic chemicals, and specific machinery, the joint statement noted.

The Union Minister's clarification comes after various farmer organisations criticised the India-US trade deal and announced protests across the country.

Concern among farmer unions

Samyukt Kisan Morcha (SKM) claimed that the proposed interim trade agreement framework between India and the US represents a "total surrender" of Indian agriculture to American multinational corporations, PTI reported earlier, citing an official statement.

The union urged all political parties, farmers and agricultural workers organisations, trade unions, and mass and class organisations to join the protest demonstrations on 12 February.

All India Kisan Sabha (AIKS) leader Krishna Prasad stated that the trade deal will significantly affect the agriculture sector by opening markets for items such as dried distillers' grains, red sorghum for animal feed, and soybean oil, and that it will also influence the dairy sector.

Krantikari Kisan Union (Punjab) leader Darshan Pal said the deal will further affect farmers who are already facing low incomes and are unable to repay loans.