On Monday, U.S. President Donald Trump announced that India had agreed to his terms on a trade deal, including halting Russian oil purchases and removing trade barriers, in return for a reduction in tariffs on Indian goods. This claim prompted a swift response from U.S. Agriculture Secretary Brooke Rollins, who stated that this deal would benefit rural American farmers and reduce the agricultural trade deficit of $1.3 billion.
How Does This Deal Help American Farmers?
The deal, as described by Trump, also includes a significant commitment from India to increase purchases of American goods, with agriculture identified as a major focus area.
If the deal unfolds exactly as described, Indian agricultural tariffs would drop to zero, allowing American agricultural exports to enter the Indian market far more competitively. American farmers could move more produce abroad and undercut local prices. What Is An Agricultural Trade Deficit? An agricultural trade deficit occurs when a country imports more farm and food products than it exports. In 2024, the US bought more agricultural goods from India than it sold to India, creating a negative balance in agricultural trade.
How Could Indian Farmers Potentially Suffer?
According to the Financial Express, India presently maintains some of the world’s highest agricultural tariffs, with duties reaching up to 100% on several fruits and vegetables.
This form of protectionism is aimed at safeguarding small farmers, food security, and rural livelihoods from cheaper foreign imports. If these tariffs are removed, domestic markets may get overwhelmed, which could drive down farmers’ incomes.
What Are The Domestic Reactions to Rollins’ Statement?
On Tuesday, the Opposition launched a sharp attack on the government, accusing them of favouring American farmers at the expense of India’s own agricultural sector.
Samajwadi Party chief Akhilesh Yadav slammed the government, saying allowing American agricultural imports is a “betrayal” of India’s 70% farming population. He warned that favoring corporates and middlemen would drive up food prices, reduce farmers’ incomes, and force them to sell their land.
TMC Rajya Sabha MP, Sagarika Ghose, posted on X, “After all the rhetoric of ‘farmers first’, are our Kisans going to lose out to America First? Has Modi betrayed the Indian farmer?”.
American officials keep insisting that AGRICULTURE is at heart of trade deal with India. Can the @narendramodi government please clarify? After all the rhetoric of ‘farmers first’, are our Kisans going to lose out to America First? Has Modi betrayed the Indian farmer? https://t.co/o7ReR6utDK
— Sagarika Ghose (@sagarikaghose) February 3, 2026
However, the Union Minister for Commerce and Industry, Piyush Goyal defended the trade deal, saying it safeguards key sectors like dairy and agriculture, protects farmers’ interests, and prioritises India’s national and economic interests
