Why is the US so hung up about Agriculture?
Why is the US pushing India to accept American agricultural products as part of a trade deal? We must consider the impact on Indian farmers! But also on Indian consumers. Lets discuss.
One of the main reason US-India Trade talks broke down, it is learnt, was the US insistence that India open its agricultural markets. The argument is that India has raised substantial tariffs and non-tariff barriers to agricultural products from all countries, specially the US.
Is it true?
Yes!
First, after the British left Indian agriculture in tatters - subject to famines and excesses, India was at the mercy of global food aid. We have won food security at great cost. We do not want to sacrifice that food security at altar of trade.
Second, India agriculture employs the poorest of Indians. We want to double their incomes every 2-3 years. This requires investment in cold-chains, food processing and allied industries. And given the financial vulnerabilities of this segment, protection will be required.
Third, farm-sales lobbies are controlled by middlemen and are anti-farmer and regime change forces have infiltrated them. Modi brought in farm reform laws in farmers interests but he had to withdraw them - in national interests.1
Finally, as I discussed previously, there is a reason for specific barriers against US food imports - our history with PL 480.
But there is other reason why US is pushing for agri/food trade.
We are seeing RFK Jr. shake things up in the US food industry with his Make America Healthy Again initiatives. These changes may be potentially affecting2 an incredible $1.2 trillion in sales/revenues for American companies. Even a 20% decline would deliver a shocking blow of $250 billion! Such losses could spell job cuts and economic turmoil—something Trump cannot allow to happen.
Hence the coordinated effort to find new markets for American food and food processing products - healthy and unhealthy. But we know how companies think and therefore we can guess where this is going. They want to off-set the losses that will emerge from MAHA changes AND they want US agro-processing companies to profit from trade. So naturally, they look at the most populous country as potential market.
This must stop!
We do not want a repeat of the PL-480 debacle. We want RFK Jr. to improve the quality of food, both raw and processed, in the US. But do not send those rejected products to India - or to any country.
We also want India to move to such a healthy, natural and organic food ecosystem. India has to rid itself of its addiction to Palm oil and food processed using unhealthy chemicals, “flavour enhancers”, “additives”, “emulsifiers” and “food grade colouring agents”. Most of these are neither healthy nor necessary. There is absolutely no place for over-processed, chemical-infused foods, genetically modified organisms, or any form of overly processed products in our diets.
We must stand firm in our belief in the importance of our heritage of ecologically sustainable, regenerative agriculture. It’s time to take a stand for our natural, authentic, and organic foods!
Stay strong, Modi-ji!
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Notes
Modi stated he “brought these laws in support of farmers, but he is withdrawing them in national interests”. The Supreme Court committee found that farmers were actually supporting these laws. The farm-sales lobbies are national security hotspot in India. They are looking for reasons to paralyze the economy and country to spur regime change. Trump’s withdrawal of US Aid funding has created breathing space for India here.
That does not mean ALL this sales will go to ZERO. Rather, there will be some financial hit, either from dropping some products, changing ingredients or reworking the manufacturing process for these products.
A ripple effect… Change something and find it is connected to everything else. 🤔
Thanks Rahul.