Samyukt Kisan Morcha Slams Centre Over India-US Trade Talks, Warns of Impact on Farmers

New Delhi: The Samyukt Kisan Morcha (SKM) on Thursday mounted a sharp attack on the Union government following remarks by the Commerce Minister suggesting that India could gain zero-tariff export access under an interim trade agreement with the United States by sourcing raw materials from America. The farmers’ umbrella body said the statement exposed what it described as the government surrendering the self-reliance and national sovereignty of India to US.

In a statement, SKM rejected the government’s assertion that agriculture has been kept outside the proposed India-US trade framework, arguing that recent policy moves show the opposite. According to the organisation, free trade agreements pursued by the current dispensation are paving the way for what it termed “economic colonisation”, turning India into a major market for multinational corporations and imported agricultural goods.

The farmers’ group expressed particular concern over cotton, warning that duty-free imports could sharply depress domestic prices and harm farmers. It pointed out that while the cost-based formula of C2 plus 50% would place the minimum support price (MSP) for cotton for the 2025 kharif season at over ₹10,000 per quintal, the officially announced MSP was substantially lower. SKM also alleged that inadequate procurement mechanisms have forced farmers to sell produce at prices far below MSP. The lifting of import duties on cotton last year, it said, had further weakened farmers’ income security, citing a sharp rise in cotton imports from the US over the past year.

The organisation also criticised the Centre’s decision to permit large-scale wheat exports, which the government has described as a measure to stabilise domestic markets. SKM argued that simultaneous liberalisation of imports and exports of raw agricultural commodities, without a clear strategy to strengthen domestic processing and industry, could undermine food security and marginalise Indian farmers.

According to SKM, products such as apples, cotton, tree nuts, soybean oil, wine, spirits and animal feed have been opened up under interim trade arrangements with the US, while dairy products feature in trade agreements with the European Union, New Zealand and the UK. These steps, it claimed, could allow foreign companies to dominate key segments of India’s farm economy.

The farmers’ body further alleged that significant changes to tariff structures — including steep cuts in import duties and increases in export levies — were agreed to without adequate parliamentary scrutiny. It reiterated its long-standing demand for a legal guarantee of MSP based on comprehensive cost calculations and accused the government of dismantling protections for agriculture and dairy sectors.

Reiterating its political demands, SKM called for the resignation of the Commerce Minister and urged farmers to prepare for sustained protests through village-level demonstrations, public meetings and outreach campaigns. It said the issue would be a key focus at its national council meeting scheduled for February 24 in Kurukshetra, where future action plans to intensify the agitation are expected to be discussed.