What’s at stake for Indian agriculture in Trump’s trade deal?

A farmer walks across his mustard field on the outskirts of Amritsar on February 1, 2026. (FILE/AFP)
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Updated 08 February 2026
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What’s at stake for Indian agriculture in Trump’s trade deal?

  • Indian farmers have expressed concern that New Delhi has made too many concessions to Washington after the two countries brokered a new trade deal that would lower tariffs

MUMBAI: Indian farmers have expressed concern that New Delhi has made too many concessions to Washington after the two countries brokered a new trade deal that would lower tariffs.
Under the terms of the deal that was laid out in a joint statement from both countries released on Saturday, India will “eliminate or reduce tariffs on all US industrial goods” and other food and agricultural products.
Meanwhile, the US will apply a reciprocal tariff rate of 18 percent on goods from India, including textiles and apparel, leather and footwear, plastic and rubber, organic chemicals, and certain machinery, the joint statement added.
The terms were released after US President Donald Trump announced a trade deal with India, stating that Prime Minister Narendra Modi had promised to halt Russian oil purchases.
Modi lauded the new trade deal in a post on the social media platform X later on Saturday, saying it would open up opportunities and generate jobs.
But Indian farmer unions weren’t convinced, calling the deal a “total surrender” to American agricultural giants.
“Indian industry, agriculture... are now under grave threat of cheap imports that will be dumped into Indian markets,” the Samyukt Kisan Morcha (SKM), a coalition of multiple farmers’ unions, said in a statement following the announcement.
The group also called on farmers to join a nationwide protest on February 12.
- What’s on the table? -
The joint statement states that India will “eliminate or reduce” tariffs on a “wide range of US food and agricultural products.”
This includes tree nuts, some fresh fruit, soybean oil, wine, spirits and other “additional products” that were not specified.
Siraj Hussain, a former agriculture ministry top official, said Indian consumers were purchasing more nuts, “so it’s import may not have much impact on local production,” and will help satisfy high demand.
Domestic growers do worry, however, about cheap imports on items such as apples, which they believe could have dire impacts on local producers.
“Import of fresh fruits such as apples... will ruin the farmers,” SKM said. Officials hope safeguards included into the agreement — such as import quotas or minimum import prices for commodities including apples — will reduce the impact of foreign competition.
New Delhi’s promise of lower duties on dried distillers’ grains and red sorghum for animal feed could also reduce the need for local soybean meal.
Opposition lawmaker Jairam Ramesh said the move to ease imports of dried distillers’ grains and soybean oil would hurt “millions of soybean farmers” in key Indian states such as Maharashtra and Madhya Pradesh.
- What’s off the table? -
To stem concerns, India’s Trade Minister Piyush Goyal reassured farmers that their interests would be safeguarded, adding that the key red lines that had been drawn by New Delhi had not been crossed.
He said “no concessions” had been extended in “sensitive areas” such as grains, spices, dairy, poultry, meat and several vegetables and fruits — including potatoes, oranges and strawberries.
The trade minister also said genetically modified crops were not part of the agreement.
This includes GM soybean, which the US has searched hard to find new markets for.
- Small farms ‘can’t compete’ -
While the farm sector contributes just 16 percent to India’s GDP, it provides livelihood to over 45 percent of the population.
This makes the industry a key voting bloc often wooed by political parties. Farmer groups have also shown, on multiple occasions, that they are a street force to be reckoned with.
In 2021, the government abandoned plans to reform the sector after months of intense protests that blocked the national capital’s highways and led to Delhi’s historic Red Fort complex being stormed by tractors.
“Indian farms are very small and they can’t really compete with highly subsidised US agriculture,” Hussain, the former agriculture ministry official, said.
- India and US trade -
Between January-November 2025, when New Delhi was negotiating with Washington, Indian imports of American agricultural goods rose 34 percent year-on-year, raking in just under $2.9 billion.
Top imports included cotton, soybean oil, ethanol and various nuts such as almonds. This happened even before the trade deal, although the rise is partly due to India reducing tariffs on some of these US items.
Experts have said that a further reduction on duties for products such as soybean oil, which was announced in the joint statement, will likely lead to a jump in goods being imported by India from the US.


US says Mexican cartel drones breached Texas airspace

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US says Mexican cartel drones breached Texas airspace

  • Drone breach comes some five months into a US military campaign targeting alleged drug-smuggling boats
  • US media also reported that the El Paso airspace closure may have been caused by the US military

HOUSTON: The Trump administration said Wednesday that Mexican cartel drones caused the temporary closure of a Texas airport, but some Democratic lawmakers pushed back, suggesting US military activity was responsible for the disruptive shutdown.
The report of the drone breach comes some five months into a US military campaign targeting alleged drug-smuggling boats, and could provide a pretext for President Donald Trump to follow through on his threats to expand the strikes to land.
Trump has specifically threatened to attack cartels inside Mexico, which said it had “no information” on drones at the border.
The US Federal Aviation Administration (FAA) said late Tuesday the airspace over the Texas border city of El Paso would be shut to all aircraft for 10 days, citing unspecified national “security reasons,” only to lift the closure after less than 24 hours.
Transportation Secretary Sean Duffy said in a post on X that the FAA and the Defense Department “acted swiftly to address a cartel drone incursion,” adding: “The threat has been neutralized, and there is no danger to commercial travel in the region.”
A US administration official meanwhile said the breach was by “Mexican cartel drones,” and that US forces “took action to disable the drones,” without providing specifics.
But Democratic Representative Veronica Escobar, whose district includes El Paso, questioned the Trump administration’s explanation, saying it was “not what we in Congress have been told.”
“The information coming from the administration does not add up and it’s not the information that I was able to gather overnight and this morning,” Escobar told journalists.
And top Democratic lawmakers from the House Committee on Transportation suggested the Pentagon may have been responsible for the situation, saying defense policy legislation allows the US military to “act recklessly in the public airspace.”
The lawmakers called for a solution that ensures “the Department of Defense will not jeopardize safety and disrupt the freedom to travel.”

- War against ‘narco-terrorists’ -

US media also reported that the El Paso airspace closure may have been caused by the US military, with CNN saying the shutdown was the result of Pentagon plans to use a counter-drone laser without coordinating with the FAA.
The Pentagon referred questions on the closure to the FAA, which said when it announced the move that “no pilots may operate an aircraft in the areas” covered by the restrictions and warned of potentially “deadly force” if aircraft were deemed a threat.
It updated its guidance Wednesday morning, saying on X that the closure was lifted.
Trump’s administration insists it is effectively at war with “narco-terrorists,” carrying out strikes on alleged traffickers in the Caribbean and eastern Pacific, while the US president has repeatedly said he plans to expand the strikes to land.
Mexican President Claudia Sheinbaum opposes US military intervention in her country but has so far managed to negotiate a fine diplomatic line with Trump.
She has stepped up extradition of cartel leaders to the United States and reinforced border cooperation amid tariff threats from Trump, for whom curbing illegal migration from Mexico was a key election promise.
Sheinbaum told a news conference Wednesday that she had “no information on the use of drones at the border,” but that her government was investigating.
The United States began carrying out strikes on alleged drug-trafficking boats in September, a campaign that has killed at least 130 people and destroyed dozens of vessels in the Caribbean Sea and eastern Pacific Ocean.
US officials have not provided definitive evidence that the vessels are involved in drug trafficking, prompting heated debate about the legality of the operations, which experts say amount to extrajudicial killings.
Trump also ordered a shocking special forces raid in Caracas at the beginning of January to capture Venezuelan leader Nicolas Maduro, whom Washington accused of leading a drug cartel.