India-US Trade Deal Seals Farmers' Transition from Provider to Poor Relative
In a significant departure from historical norms, the Indian state's relationship with its agricultural community has undergone a profound transformation, as evidenced by the recent inclusion of agriculture in the India-US trade deal. This shift, subtly signaled in the Budget speech, marks a long journey for farmers—from being the backbone of the nation's economy to being viewed as a distant and impoverished segment of society.
Budgetary Silence and Shifting Priorities
Finance Minister Nirmala Sitharaman's budget speech this year was notable for its loud silence on farmers. Gone were the customary tributes to the kisan and announcements of token schemes. Instead, farmers were briefly mentioned alongside other groups in the context of duties, reflecting a change in tone from "annadata" (provider) to "bechara" (helpless).
This shift is mirrored in budgetary allocations. The share of central expenditure on agriculture and allied activities has consistently declined:
- From 4.19% in 2019-20 to 3.06% in 2025-26 (revised estimate).
- Budgeted at 3.04% for the current year.
Excluding the Kisan Samman Nidhi, spending on other agriculture-related heads has fallen from 2.73% in 2018-19 to 1.78% last year, with a slight increase to 1.85% budgeted this year. Agricultural scientist G V Ramanjaneyulu has criticized this disconnect, noting that the budget fails to address key challenges like low income, high indebtedness, poor irrigation, soil degradation, groundwater depletion, and climate change.
The India-US Trade Deal: A Fundamental Departure
The decision to include agriculture in the India-US trade deal represents a fundamental departure from the long-standing policy of keeping food and farm produce out of international trade treaties. While previous agreements with Australia and the EU made concessions on items like wines and processed foods, the US deal focuses on gaining access to India's growing animal feed market.
Key aspects of the deal include:
- Import of genetically modified corn, primarily as dried distillery grain and solubles (DDGS).
- Allowance of genetically modified soyabean as soya oil.
- Inclusion of "some pulses," with potential for more products to follow.
Experts such as Harish Damodaran and Harvir Singh warn that this could severely impact maize and soyabean farmers, who are already selling below the official Minimum Support Price (MSP). The deal also includes provisions for "deeper access" and commitments to address non-tariff barriers, raising concerns from groups like the Alliance for Sustainable and Holistic Agriculture (ASHA-Swaraj) about the import of a wider range of GM crops and food products.
Historical Context and Unwritten Contracts
This new scheme is not entirely novel. Post-Independence India has often treated farmers as an afterthought in developmental planning, with brief exceptions like the first Five Year Plan or voices like Chaudhary Charan Singh. Policymakers have adhered to a borrowed belief that India would follow the path of developed economies, with most of the population moving away from agriculture.
This residual perspective has shaped an unwritten, coercive contract with farmers, based on their lack of alternative livelihoods and bargaining power. The state prioritized agricultural production over producer well-being, setting food prices based on consumer needs rather than fair returns for farmers. Over time, this evolved from exhortations to produce more for the nation to selective bargains offering remunerative prices for certain crops and regions, and later to subsidies like cheap electricity and fertilisers, fostering dependency.
Towards a New Politics and Alternative Future
The current state-farmer relationship is increasingly unsustainable, with the state offering mere doles in exchange for votes. However, events like the COVID-19 pandemic and the agitation against farm laws have highlighted that farmers are neither dispensable nor helpless. Numerous alternative agricultural experiments across the country point to the potential for a different future.
The challenge now is for farmers to weave a new politics with different policies and perspectives, moving beyond the patron-client dynamic to reclaim their role as vital contributors to India's growth and sustainability.
