An interim framework for a new trade agreement between the United States and India has been released, aiming to reduce additional tariffs imposed on India during the Trump administration. The deal seeks to rebuild energy ties and expand economic cooperation, potentially reshaping global supply chains. Under Washington’s pressure, India agreed to allow entry of certain US agricultural products into its market, a move that has drawn criticism from farmers and opposition parties.
The agreement permits imports of high-protein animal feed, corn, and ethanol byproducts from the US, expected to benefit India’s $30 billion poultry industry by lowering feed costs. However, soybean and oilseed growers may suffer due to reduced demand and falling prices. The inclusion of duty-free soybean oil and cotton imports has raised further concerns, though the government says import quotas will protect domestic producers. Apple and dry fruit imports are also covered, but officials expect minimal harm since domestic supply is insufficient.
India’s major farmers’ union, Samyukt Kisan Morcha, has called for a nationwide strike on February 12 to protest the deal, citing threats to the agricultural sector.