Kerala raises concerns over proposed trade treaty with U.S.

Kerala Agriculture Minister P. Prasad has written to Union Agriculture Minister Shivraj Singh Chouhan and Commerce Minister Piyush Goyal, raising concerns over the proposed Indo-U.S. Free Trade Agreement (FTA).

As agriculture was a State subject, the Centre should not sign any agreements that hurt farmers, he cautioned.

“The Centre is keeping this treaty as a secret. It should disclose the details and discuss it in Parliament and with States. Even defence deals are publicised, but on this issue that impacts crores of people, there is complete silence,” Mr. Prasad told The Hindu, adding that he would write letters to Agriculture Ministers of all States urging them to raise their voice against relaxing import duties on agricultural and milk products.

Mr. Prasad noted that the treaty with United Kingdom was also finalised without discussions with States.

He acknowledged the Centre’s efforts for tariff exemptions for the country ahead of the July 9 deadline, beyond which the United States may reimpose a 26% reciprocal tariff on Indian goods. “However, the U.S. demand for sweeping concessions in India’s agricultural and dairy sectors is deeply concerning, particularly for agrarian States like Kerala, where agriculture forms the backbone of the rural economy. After thoughtful deliberation on the far-reaching implications of such concessions, we must register our firm and unequivocal opposition to any agreement that endangers the livelihoods of millions and threatens the very foundation of Kerala’s — and indeed India’s — agricultural economy,” he said.

The Minister pointed out that the U.S. treaty could hamper the coconut oil industry as cheap soybean oil could be imported from the U.S. without any restrictions. Any attempt to allow unchecked import of synthetic rubber would also affect Kerala’s rubber farmers, he added.

“Kerala’s agriculture, centred on cash crops like coconut, rubber, pepper, cardamom, tea, and coffee, supports millions of smallholder farmers. The proposed FTA poses multiple risks,” he said.

Farmers organisations such as Samyukt Kisan Morcha and Samyukt Kisan Morcha (non-political) had voiced concerns over the proposed agreement with the U.S. as well. They had held protests across the country against it.