Why Punjab farmers are opposing India-US trade deal: Fears over MSP, dairy and farm incomes | Explained
PTC Web Desk: As thousands of farmers gather at Punjab's Shambhu border for their proposed march to Delhi on Tuesday, the focus of the protest has shifted from farm laws to the proposed India-US trade agreement.
Farmer organisations believe that the agreement could expose Indian agriculture to increased foreign competition, affecting crop prices, dairy farming and the financial stability of small farmers. While the Centre has not yet announced the final details of the trade deal, farmer groups say they want safeguards before any agreement is signed.
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Unlike earlier protests, this mobilisation was not marked by large public campaigns or mass rallies in advance. However, thousands of farmers have now gathered at the Punjab-Haryana border, indicating growing concern within the farming community over the proposed US-India trade agreement.
Farmer leaders say the protest reflects widespread anxiety about the future of agriculture if import restrictions are eased.
Farmers fear that a trade agreement with the United States could increase imports of agricultural products into India. According to farmer organisations, American agriculture benefits from advanced technology, large-scale farming and government support, allowing farmers there to produce crops at lower costs. They worry that cheaper imported products such as maize, soybean, pulses and processed food items could reduce demand for locally grown produce and put pressure on domestic prices.
Farmer representatives argue that Indian farmers, especially those with small landholdings, may find it difficult to compete under such conditions.
Agricultural experts believe the Minimum Support Price (MSP) system may not face an immediate impact, as government procurement of wheat and paddy will continue under existing policies.
However, economists caution that if imported agricultural products become more competitive over time, market prices could influence domestic agriculture more strongly. This, they say, could create long-term challenges for crops that currently depend on MSP-based procurement.
Among all sectors, dairy farming has become one of the biggest concerns for farmer organisations. Many small and marginal farmers in Punjab depend on milk production as an additional source of income alongside farming. Farmer unions fear that lower import duties on dairy products could lead to cheaper foreign products entering Indian markets, putting pressure on local milk prices.
They also point out that dairy farming supports the livelihoods of many rural women, making the issue significant for household incomes across villages.
The current protest differs from the historic farmers' agitation of 2020-21, which focused on the Centre's three farm laws that were later repealed.
This time, the main issue is the proposed India-US trade agreement rather than agricultural legislation. Another major difference is that several farmer organisations are protesting separately instead of joining under one common platform, as they did during the farm laws movement.
Authorities have also adopted stricter security measures, with farmers being stopped at the Shambhu border before they could proceed towards Delhi.
The latest protest also carries political implications as Punjab prepares for future Assembly elections. Since the protest is directed against the Centre, political observers believe it could influence public opinion in rural areas. Farmer issues have traditionally played a significant role in Punjab politics, making the developments closely watched by all major political parties.
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- PTC NEWS
