India-US trade deal seals farmers' slide — provider to poor relative, Pg13

Key Highlights:

• The India-US trade deal signals a shift in the Indian state's relationship with farmers, prioritizing trade over farmer welfare.
• Budgetary allocations for "Agriculture and Allied Activities" have decreased from 4.19% in 2019-20 to 3.04% in 2025-26.
• The trade deal may allow import of genetically modified (GM) corn and soybean, impacting local maize and soybean farmers.
• The agreement includes provisions for "deeper access" and addressing "non-tariff barriers" for US food and agricultural products.

Detailed Insights:

• The Indian state's relationship with farmers has evolved from provider to a patron-client model, with the state offering discretionary support in exchange for loyalty and votes.
• The Finance Minister's budget speech reflected this shift, with a fleeting reference to farmers and a change in tone from "annadata" to "bechara".
• The budget was disconnected from the immediate and long-term challenges of Indian agriculture, such as low income, high indebtedness, and poor irrigation.
• The India-US trade deal involves a departure from the policy of keeping food and farm produce out of international trade treaties, potentially harming local farmers.
• The deal could hurt maize and soybean farmers who are already selling their crops below the official Minimum Support Price (MSP).
• The Alliance for Sustainable and Holistic Agriculture (ASHA-Swaraj) has expressed concern that the deal opens doors for the import of a larger spectrum of GM crops and food products.
• Post-Independence, the Indian state has lacked a forward-looking vision for the farming community, with policymakers believing that most of the population would shift away from agriculture.
• The state focused on the quantum of agricultural production rather than the producer's well-being, with the price of staple food products determined by the consumer's need for cheap food grains.
• The state offered subsidies instead of fair prices, pushing farmers into permanent dependency and stigmatizing them over environmental pollution, electricity theft, and freebies.

Key Concepts Involved:

• Minimum Support Price (MSP): A price set by the government to purchase certain crops from farmers, ensuring a minimum profit.
• Genetically Modified (GM) Crops: Plants whose DNA has been modified using genetic engineering techniques.
• Non-Tariff Barriers: Trade barriers that restrict imports or exports of goods or services through mechanisms other than simple imposition of tariffs.