MUMBAI: United States President Donald Trump on Thursday (Jul 31) slapped a 25 per cent tariff on Indian goods after prolonged talks that got bogged down over access to India’s labour-intensive agricultural sector, which New Delhi has pledged to protect.
WHY IS INDIA OPPOSING THE PRODUCTS THE US IS LOBBYING FOR?
The US is pressing India to open its markets to a wide range of American products, including dairy, poultry, corn, soybeans, rice, wheat, ethanol, fruits and nuts.
While India is willing to provide greater access for US dry fruits and apples, it is holding back on corn, soybeans, wheat and dairy products.
A key reason for this resistance is that most US corn and soybeans are genetically modified (GM), and India does not permit the import of GM food crops.
GM crops are widely perceived in India as harmful to human health and the environment, and several groups affiliated with Prime Minister Narendra Modi’s ruling Bharatiya Janata Party (BJP) are opposing their introduction.
The commercial cultivation of a high-yielding GM mustard variety that India developed itself is currently not allowed due to an ongoing legal battle.
Like GM crops, dairy is also a highly sensitive issue, as it provides a livelihood for millions of farmers, including many who are landless or smallholders. The dairy industry helps sustain farmers even during erratic monsoon seasons, which can cause significant fluctuations in crop production.
In India, where a large proportion of the population is vegetarian, food choices are strongly influenced by cultural and dietary preferences. Indian consumers are particularly concerned that cattle in the US are often fed animal by-products – a practice that conflicts with Indian food habits.
