A newly brokered trade agreement between the United States and India has ignited significant apprehension among Indian agricultural stakeholders, who fear the arrangement disproportionately favors American interests. The deal, announced jointly on February 8, 2026, involves India committing to eliminate or reduce tariffs on a comprehensive range of US industrial goods and agricultural products, including tree nuts, select fresh fruits, soybean oil, wine, and spirits.
In reciprocal terms, the United States will implement an 18 percent tariff on Indian exports spanning textiles, apparel, leather goods, footwear, plastic and rubber products, organic chemicals, and specific machinery categories. The announcement came alongside President Donald Trump’s revelation that Prime Minister Narendra Modi had pledged to cease Russian oil purchases, adding geopolitical dimensions to the economic agreement.
While Prime Minister Modi celebrated the pact as a job-creating opportunity engine, agricultural coalitions expressed vehement opposition. The Samyukt Kisan Morcha (SKM), representing multiple farmers’ unions, condemned the arrangement as a ‘total surrender’ to American agricultural conglomerates, warning that cheap imports would flood Indian markets and undermine domestic producers. The coalition has called for nationwide protests scheduled for February 12.
Despite government assurances that sensitive sectors including grains, spices, dairy, poultry, meat, and certain fruits and vegetables remain protected, opposition lawmakers highlight particular vulnerability for soybean farmers in Maharashtra and Madhya Pradesh. The agreement facilitates increased imports of dried distillers’ grains and soybean oil, potentially displacing domestic soybean meal demand.
Agricultural experts note the fundamental imbalance between India’s predominantly small-scale farming operations—supporting 45% of the population despite contributing only 16% to GDP—and the highly subsidized, industrial-scale American agricultural sector. This disparity raises concerns about long-term competitiveness, echoing previous farmer protests that forced policy reversals in 2021.
Trade data from January-November 2025 already shows a 34% year-on-year increase in Indian agricultural imports from the US, reaching nearly $2.9 billion, predominantly in cotton, soybean oil, ethanol, and nuts. Further tariff reductions anticipated under the new agreement are expected to accelerate this trend, potentially reshaping India’s agricultural landscape.