By Rajrandra Jadhav
Mumbai (Reuters) – US President Donald Trump on Thursday hit a 25% tariff for Indian goods after prolonged conversations, which dwells on access to the labor -intensive agricultural sector in India, which New Delhi has promised to protect.
Why does India oppose the products for which the United States is lobbying?
The United States is pressured by India to open its markets for a wide range of American products, including dairy products, poultry, corn, soybeans, rice, wheat, ethanol, fruits and nuts. While India is ready to provide greater access for dried fruits and apples of the United States, it lingers on products of corn, soy, wheat and dairy products.
The main reason for this resistance is that most American corn and soybeans are genetically modified (GM) and India does not allow GM food crops.
GM cultures are widely regarded in India as harmful to human and environment health and several groups related to the ruling Bharati Party Jana of Prime Minister Narendra Modi (BJP) are opposed to their introduction. Commercial cultivation of a high -yielding GM mustard variety, which is currently developing, is not allowed due to a continuing legal battle.
Like GM crops, dairy products are also a highly sensitive problem as it provides livelihood for millions of farmers, including many who are lawless or small farmers. The dairy industry helps to keep farmers even during chaotic monsoon seasons, which can cause significant fluctuations in crop production.
In India, where much of the population is vegetarian, the choice of food is strongly influenced by cultural and dietary preferences. Indian consumers are particularly concerned that livestock in the United States often feed on by -products – a practice that contradicts Indian eating habits.
Why is agricultural imports politically charged?
India is self -sufficient in most agricultural goods, except for vegetable oils. After liberalizing the import of cooking three decades ago, the country must now import nearly two -thirds of its supply to meet demand. India does not want to repeat this mistake with other main foods that represent almost half of the consumer prices index.
Although agriculture represents only 16% of India’s economy nearly $ 3.9 trillion, it is the vital force for almost half of the country’s $ 1.4 billion in the country. Four years ago, this powerful voting block forced Modi’s government to rarely withdraw to a set of controversial laws for farms.
Some of the authorities are afraid that a flood of more expensive imports in the United States would lower local prices and the provision of opposition parties an opportunity to sharpen its attack against the government. New Delhi is also worried that a trade deal with the United States may also force her to open her agricultural sector in other countries.