Indian Farmers Oppose Trade Deal With the US
SKM Accuse Minister of Commerce and Industries Piyush Goyal, of “Anti-People” Trade
The united front of farmers’ groups in India, Samyukta Kisan Morcha (SKM), announced the launch of a new campaign to demand the removal of the country’s Minister of Commerce and Industries Piyush Goyal, for his role in “anti-people” trade with the US.
Goyal “played the role of a traitor to open the agriculture and dairy sector to MNCs and surrender the self-reliance and sovereignty of India” in front of the US and other western countries, SKM said in the press conference on Monday 17 February.
SKM asked all its constituents to organize delegations to the offices of chief ministers and leaders of the opposition in all Indian states by 27 February, along with nationwide village-level meetings by 9 March, when the new session of Indian parliament begins. Such efforts seek to build political unity and strength behind the call to demand PM Narendra Modi to not sign the US trade deal and for the removal of Goyal. Groups will also send an open letter to high level officials demanding the same.
Goyal was overseeing the preparation of the deal, which was announced earlier this month by the US President Donald Trump. Farmers and all major opposition parties in India have called the deal “anti-people” and “against national sovereignty” and demanded its withdrawal.
Anti-farmer deal
Goyal has particularly invited the anger of the farmers after he was found contradicting himself over the issue of agriculture in the deal, a sensitive issue with the livelihoods of millions at stake.
The deal leads to the reduction of reciprocal tariffs on Indian exports from 25% to 18%, while in return, Indian tariffs on US imports would be reduced to zero.
As per claims made by US officials, India has also agreed to stop oil imports from Russia to avoid 25% additional US tariffs, apart from agreeing to buy nearly USD 500 billion worth of US products in five years.
India’s ultra-right-wing Bharatiya Janata Party (BJP) government had initially claimed that agriculture has been kept out of the purview of the deal, despite claims made by US officials on the contrary.
Goyal, in a press conference earlier this month, however, revealed an understanding on India’s agricultural market opening while attempting to ridicule the opposition’s claims about neighboring Bangladesh getting a better deal.
As per the US-Bangladesh deal, its textile exports to the US would be exempted from the 19% “reciprocal tariff” if they are made with cotton purchased from the US.
Goyal said that India can and will import cotton or other raw materials from the US in order to be exempt from the 18% tariffs imposed on exports to the US.
The cotton growers in India, already concerned about the possible loss of market in Bangladesh, objected to Goyal’s statement, claiming it amounts to lying and the total surrender of their interests in front of the US.
They have claimed that it would be impossible for Indian cotton growers to compete with US cotton producers amidst another fall in domestic cotton’s demand and prices.
Deal will further intensify the farmers’ misery
Millions of farmers in India grow cotton. They have been complaining of non-profitability and financial losses due to inadequate state support and protection. Hundreds of thousands of farmers have committed suicide due to economic distress in the last two decades.
Organized farmers’ movements, such as the SKM, have been pushing for a legal minimum support price (MSP) to make agriculture profitable for years without any success.
Reminding the Modi government of its failure to fulfill the promises of a legal MSP, farmers, under the leadership of SKM, have carried out scores of nationwide protests. They also participated in the historic national strike on 12 February called by the CTUs to press for their demands.
“The import of raw cotton from the US will further reduce the already low domestic price of cotton and the crisis-riden, suicide prone cotton fields will witness the intensification of indebtedness as well as greater peasant suicides,” the All India Kisan Sabha (AIKS), one of the largest constitutes of the SKM, said in a statement last week.
The AIKS also accused Goyal of supporting “the highly mechanized, state-sponsored cotton farmers of the US, thus nakedly betraying the cotton farmers of India who are suffocating due to the escalating cost of production and the failure to get even the limited MSP” for their crops.
It is clear now that the BJP government is “encouraging domestic industrialists to import cotton from the US, while leaving Indian farmers to compete directly in the global market,” AIKS said, claiming that, given the absence of effective market support, it will be impossible for them to survive and millions will be forced to leave agriculture.
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How terrible for Indian farmers, especially for those born into a caste, which is the same unethical practice slavers have done/do to other peoples. This measure would also weaken India's Russia ally in its existential war for sovereignty.
Where is China in this? Where is the Brics coalition in this?
It is long past time for Brics to take on its own currency and actively oppose US domination. If Trump can sanction so can Brics, so can the whole world do against US.
Ron Ridenour