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Lessons from Trump's tariffs: Reduce dependence on farms

26 21
thursday

US President Donald Trump’s decision to impose a steep 50 per cent penal tariff on Indian agricultural products is more than a diplomatic jolt — it’s a reminder of how unequal the global farm trade is. Washington has justified the move as “reciprocity” for India’s refusal to open its markets to US grains, dairy, fruit, and fish. In truth, it is the familiar playbook of rich nations — demand access for their subsidised surpluses while shielding their farmers through lavish state support.

India’s stand was the right one, both economically and socially. Agriculture sustains 42 per cent of our population and employs 46 per cent of our workforce, yet it contributes less than 20 per cent of the GDP. This imbalance means that most Indian farmers remain trapped in debt and poverty. The recent NABARD (National Bank for Agriculture and Rural Development) Rural Financial Inclusion Survey reveals that an average farming household earns Rs 13,661 per month, with a mere Rs 4,476 from actual farming. The rest comes from supplementary work, such as working as labourers or engaging in petty trade. Opening the floodgates to the highly mechanised, subsidy-backed output of US farms would devastate these fragile livelihoods.

The US spends over $48 billion annually on domestic farm support, according to WTO data. This includes crop insurance subsidies covering up to 60 per cent of premiums, whereas a large number of our farmers are waiting for compensation for their produce losses under PMFBY (Pradhan Mantri Fasal Bima Yojna). In the US, price guarantees........

© Indian Express