Kerala Minister Opposes India-US Free Trade Agreement Over Agriculture Concerns

(MENAFN- KNN India) Kerala, Jul 4 (KNN) Kerala's Agriculture Minister, P Prasad, has voiced strong opposition to the proposed India-US Free Trade Agreement (FTA), raising alarm over its potential impact on India's agricultural sector.

In letters addressed to Union Commerce Minister Piyush Goyal and Union Agriculture Minister Shivraj Singh Chouhan, Prasad warned that the US's demands-particularly in the dairy and agriculture sectors-could harm states like Kerala.

Prasad highlighted that the US soybean oil, which benefits from an 80 per cent production subsidy, if imported freely, could destabilise India's coconut oil market.

He also cautioned that importing low-cost synthetic rubber would severely affect natural rubber farmers in Kerala.

Emphasising the disparity between the two nations, Prasad noted that US agriculture thrives on large-scale mechanisation and subsidies, while India relies on smallholder farmers.

He cited the ASEAN FTA as a warning, where reduced tariffs on products like pepper and edible oils led to a crash in local prices and farmer incomes.

He also criticised NITI Aayog's suggestion to allow duty-free imports of genetically modified (GM) soybean and maize, arguing that such moves would contradict India's current agricultural policies and endanger Kerala's biodiversity.

Meanwhile, India's trade negotiators, led by Rajesh Agarwal, remain in Washington for final-stage FTA talks. A key sticking point is the US push for agricultural and dairy access, which India opposes.

The US also plans to retain a 26 per cent tariff on Indian steel, with little chance of an exemption. India, in contrast, is advocating for zero tariffs on multiple sectors and is pushing to protect its farmers while seeking market advantages for its labour-intensive industries like textiles to better compete with nations such as Vietnam and Bangladesh.

(KNN Bureau)

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