·The Hindu·15 marks·250–350 wordsPolityEconomyIR

Opening agricultural markets is the most contentious issue in India's trade agreements with developed countries. Analyse.

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In this answer
  1. Why agriculture is contentious
  2. Is agriculture the "most" contentious issue?

The India–US trade framework of February 2026 shows the problem clearly. India kept meat, poultry, dairy, GM foods, cereals, millets and several pulses fully out of the deal [1]. Even so, Washington still treats farm market access as its main demand [2]. Agriculture is the hardest issue because it involves livelihoods, food security and federal politics all at once.

Why agriculture is contentious

  • Unequal competition: India's small, fragmented farms face mechanised and heavily subsidised farms in developed countries. A cut in duty quickly becomes a cut in the price Indian farmers receive.
  • Pressure from a partner seeking a "quick win": After losing Congress, President Trump is expected to push harder for "market access for US farm and industrial goods" [2].
  • Food security and policy space: Staples linked to MSP and public procurement, such as cereals and millets, were kept outside the deal [1].
  • Regulation and culture: GM food products and dairy are in the exempted list [1]. They raise both safety concerns and social sensitivities.
  • Federal tension: Agriculture is a State subject (Entry 14, State List), but the Union signs trade treaties without needing Parliament's ratification. This makes farmers distrust the process.
  • Concessions one product at a time: Lentils and tree nuts have already entered through tariff rate quotas [1]. These quotas can be expanded under pressure.

Is agriculture the "most" contentious issue?

  • Other sensitive sectors exist. Automobiles and medical devices got duty cuts spread over several years [1], and IPR and labour standards are disputed in talks with the EU.
  • Those sectors can be handled by phasing in duty cuts slowly. Agriculture involves firm red lines: India left RCEP (2019) partly over dairy and farm concerns.
  • India also gains little in farm exports. Only USD 1.36 billion of Indian farm exports to the US get zero additional duty, while textiles and leather gain the most [1].
India's graded protection model [1]
Exemption → Tariff cut → TRQ → Phased (≤10 yrs) → Immediate (non-sensitive)
   (most protected) ───────────────────────────────→ (least protected)

Fig: India places farm products along this scale of protection

In short, agriculture is the most contentious issue because the economic, political and food-security stakes all come together in it. The way forward is to keep using the graded model, consult states and table final texts in Parliament. Farm competitiveness should also be built through FPOs and better export infrastructure. This would let India trade with developed countries while protecting SDG-2 and the Article 48 goal of modernising agriculture.

Sources

  1. 1PIB Backgrounder: "India Achieves Landmark Trade Victory, Unlocks $30-Trillion U.S. Market for Exports Across Key Sectors" (9 Feb 2026)exemption list, TRQs on lentils and tree nuts, phased duty cuts for autos and medical devices, USD 1.36 bn farm exports at zero duty, graded protection model
  2. 2The Hindu, "U.S. midterm impact on India: faster trade deal talks, higher tariffs likely" (5 Nov 2026)US push for farm and industrial market access after the midterms
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