menu_open Columnists
We use cookies to provide some features and experiences in QOSHE

More information  .  Close

Opinion | US Tariff Is A Wake-Up Call For India To Bolster Farm Competitiveness

11 0
12.09.2025

US President Donald Trump’s imposition of a steep 50 per cent punitive tariff on Indian imports came into effect on 27 August, is not just a diplomatic setback; it is a stark reminder of how unequal the global farm trade is. The United States has justified the move as “reciprocity" for India’s refusal to open its markets to American genetically modified (GM) crops such as Maize and Soybean. In reality, it is the familiar playbook of wealthy nations: protect their farmers with massive subsidies, demand access for their high-yield GM surpluses, and penalise competitors who resist. The result is a global agricultural system where small and marginal farmers in developing economies like India remain trapped in a cycle of low productivity, debt, and poverty.

However, India’s decision to refuse the opening of agricultural markets to US imports was a necessary measure to protect our farmers in the short term, as they are unable to compete with US farmers. In the long run, genuine farmer welfare is simply about keeping competition at bay. It requires equipping farmers with the high yield alternative to GM crop varieties, modern irrigation, storage, and precision agriculture, which will significantly increase yields and lower input costs and providing international market access, enable them to thrive without perpetual protection and reducing post-harvest losses from the current 15–20 per cent to the global standard of 5 per cent can release vast quantities to enhance competitiveness.

Consider the subsidies, the United States spends over $48 billion annually on domestic farm support, allowing its wheat, maize, and dairy farmers to sell abroad at or even below cost without losing income. India, by........

© News18