How will the new trade deal affect Indian farmers and US companies

How will the new trade deal affect Indian farmers and US companies

by | Jul 3, 2025 | Import / Export, Livestock

The new India-US trade deal is expected to have mixed effects for Indian farmers and US companies, especially in the agriculture and dairy sectors.

Impact on Indian Farmers:

  • High Risks for Small Farmers: If India lowers tariffs on US dairy and agricultural products, millions of small Indian farmers could be at risk.
    Even a small increase in US imports—just 5% market share—could displace 3–4 million marginal dairy farmers. The US has a significant productivity advantage, with much higher milk yields per cow than India.
  • Threat from Subsidized and GM Crops: US agriculture is heavily subsidized, and American companies are pushing for access for genetically modified (GM) crops like soybeans and maize. Experts warn that allowing
    these imports could cause a crash in prices for Indian farmers, especially for the 24 million who grow soybeans and maize. This could further impoverish farmers, as domestic prices may fall below government-set minimum support prices.
  • Livelihoods at Stake: Over 700 million Indians depend on agriculture for their livelihood. Opening up the market to US agricultural products could lead to dumping of cheap, subsidized goods, threatening food
    security and rural incomes.

Impact on US Companies:

  • Market Access and Competitiveness: US companies stand to gain significant new access to India’s vast market of 1.4 billion consumers. Lower tariffs would help American businesses compete more effectively,
    especially in sectors like agriculture, dairy, automobiles, and industrial goods.
  • Potential for Growth: The US is particularly interested in exporting more farm products such as maize, soybeans, cotton, and dairy to India, which could help reduce the US trade deficit with India.
  • Regulatory Barriers Remain: While tariff reductions are helpful, US companies still face challenges from India’s non-tariff barriers and strict quality control regulations, which can limit the actual impact of
    the deal.

Summary Table:

Group Potential Benefits Key Risks/Challenges
Indian Farmers Avoidance of steep US tariffs on exports Loss of income, price crashes, competition from subsidized/GM US imports, threat to small/marginal farmers
US Companies Greater market access, increased exports, improved competitiveness Indian non-tariff barriers, regulatory hurdles, limited scope if India protects sensitive sectors

Overall : 

The deal’s main immediate benefit for India is avoiding a steep 26% US tariff on its exports, which would help Indian exporters remain competitive. However, unless India maintains protections for its agriculture and dairy sectors, the
livelihoods of millions of small farmers could be at risk. For US companies, the deal could open up new opportunities in India, but success will depend on how much India is willing to open its markets and relax regulatory barriers.

India Joins Global Elite in Animal Health with Rinderpest Biosecurity Upgrade

India Joins Global Elite in Animal Health with Rinderpest Biosecurity Upgrade

by | Jun 20, 2025 | Agri News, Livestock

India has earned global recognition as ICAR-NIHSAD Bhopal receives Category A Rinderpest Holding Facility status from WOAH and FAO. This places India among a select few nations trusted with safeguarding the world from a deadly livestock disease that once wreaked havoc.

In a significant achievement for India’s animal health sector, the ICAR-National Institute of High Security Animal Diseases (NIHSAD), Bhopal has been designated as a Category A Rinderpest Holding Facility (RHF) by the World Organisation for Animal Health (WOAH) and the United Nations Food and Agriculture Organization (FAO).

 

Image Ref: https://www.pib.gov.in/

This recognition, announced at the 92nd WOAH General Session in Paris on May 29, 2025, positions India among six elite global laboratories entrusted with the secure containment of Rinderpest Virus-Containing Material (RVCM). The certificate was received by Ms. Alka Upadhyaya, Secretary of the Department of Animal Husbandry & Dairying (DAHD) and India’s official WOAH Delegate.

Rinderpest—often called the “cattle plague”—was a deadly disease that devastated livestock populations for centuries. Although it was officially declared eradicated in 2011, the virus still exists in controlled lab environments to prevent accidental resurgence or bioterror threats.

The ICAR-NIHSAD facility, a Biosafety Level-3 (BSL-3) lab and WOAH reference center for avian influenza, had already been serving as India’s official RVCM repository since 2012. However, it was after a detailed international review in March 2025 that the institute was granted Category A RHF status for its advanced biosafety protocols, precise inventory systems, and emergency preparedness.

Image Ref: https://www.pib.gov.in/

“This achievement reflects our continued commitment to global biosecurity and the One Health approach, where human, animal, and environmental health are closely linked,” said Ms. Upadhyaya. She also noted India’s critical role in eradicating rinderpest and now in preventing its return.

The international committee has encouraged India to work towards Category B status, which would allow the country to handle vaccine seed material—another major step in reinforcing India’s stature in global veterinary science.

This milestone not only celebrates India’s scientific excellence but also reaffirms its readiness to lead in critical areas of animal health and bio-risk management on the world stage.