Why are farmers demonstrating against a trade agreement that India has yet to sign


Farmers from Punjab, Haryana and several other states are marching to Delhi on Monday to participate in a Mahapanchayat at Kisan Ghat to protest against the proposed India-US trade agreement, despite the pact not yet being finalised.

Ahead of the gathering, Haryana Police tightened security at key border points, stopping farmer convoys at Khanauri and Bastara while maintaining extensive barricading at the Shambhu border. Prohibitory orders under Section 163 of the Bharatiya Nyaya Sanhita (BNS) also remain in effect in parts of the state.

The Mahapanchayat, being held under the banner of the 'Desh Bachao Morcha', is expected to witness participation from farmers across Punjab, Haryana, Rajasthan and Himachal Pradesh.

The Centre, however, has reiterated that it will not compromise on India's agricultural interests and has kept sensitive farm products outside the scope of the trade negotiations.

So why are farmers protesting an agreement that has not yet been signed? Here's a look at the arguments from both sides.

WHY ARE FARMERS MARCHING TO DELHI?

Farmer organisations, including the Kisan Mazdoor Morcha, argue that opening the Indian market to cheaper agricultural imports from the United States could severely affect farmers, agricultural workers, livestock rearers and small traders.

They fear that heavily subsidised American farm products could enter the Indian market in large quantities, pushing down domestic crop prices and reducing rural incomes. According to them, Indian farmers—who receive significantly lower government support than their American counterparts—would find it difficult to compete.

The protesting unions also claim that the proposed agreement could eventually extend beyond agriculture to include sectors such as dairy, industry, digital trade, e-commerce, government procurement, intellectual property rights and services.

Farmer groups have urged the Centre to abandon the proposed trade agreement and safeguard the interests of farmers and the wider public.

Opposition to the deal has been growing over the past few months. Farmer organisations in Punjab have organised motorcycle rallies, while thousands of farmers across the country last month burnt symbolic copies of the proposed agreement, alleging that it would weaken India's agricultural sector.

WHY THE DEAL HAS NOT BEEN SIGNED YET

Despite several rounds of negotiations, India and the United States have so far failed to conclude even an interim trade agreement.

According to Reuters, the latest round of talks ended without an agreement after the US did not provide assurances on some of India's key demands. These include preferential tariff treatment over competitors such as China and guarantees that Washington would not impose additional tariffs after the agreement is signed.

Reuters also reported that India has refused to make concessions on agriculture during the negotiations.

"Our position is clear – we don't intend to rush into a deal that is not on favourable terms or compromise on red lines like ceding ground on agriculture," an Indian government official familiar with the discussions told Reuters.

Commerce and Industry Minister Piyush Goyal has also maintained that India will sign an agreement only if it is balanced and beneficial for both countries.

"I had fantastic meetings with USTR Jamieson Greer when he visited Delhi in June. Both sides reaffirmed their commitment to an agreement that is balanced, commercially meaningful, and delivers tangible benefits for businesses, farmers, workers, and consumers in both countries," Goyal said on Monday, according to Reuters.

Trade Secretary Rajesh Agrawal also said the framework for the agreement is ready and will be signed "whenever it is the right time", indicating that negotiations remain ongoing.

WHAT THE GOVERNMENT HAS SAID

The Union government has repeatedly sought to reassure farmers that sensitive agricultural products are being protected during the negotiations.

Officials have consistently maintained that India will not compromise its core agricultural interests in order to conclude the agreement. They have also said that adequate safeguards will be incorporated into any final deal to protect domestic farmers.

Commerce Minister Piyush Goyal has previously stated that India will move ahead with an agreement only if it serves the country's interests and benefits all stakeholders.

The government's position has been that the proposed pact should create opportunities for businesses, farmers, workers and consumers without compromising India's strategic priorities.

WHAT ARE THE FARMERS' MAIN DEMANDS?

Farmer unions say the protest is intended to prevent any concessions on agriculture before the trade agreement is finalised.

They argue that once access to the Indian market is granted, reversing those decisions would be difficult, making it essential to raise objections while negotiations are still in progress.

The protesters are also demanding greater transparency in the negotiations and clear assurances that agriculture and allied sectors will remain fully protected.

As India and the United States continue discussions, agriculture remains one of the most contentious issues. While the government insists it will not cross its "red lines", farmer organisations want those assurances to be explicitly reflected in the final agreement before any pact is signed.


 

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