India's dairy industry is moving towards progress, with the possibility of employing about 1.1 crore people soon. The US provides about $ 28 million in subsidies to its dairy industry every year.
In such a situation, how will India be able to compete with their dairy products? Dairy products in India attract an import duty of 30 to 60 percent, while in the US, there is an import duty of 60 to 70 percent. India never opposed it.
In fact, the US is trying to enter into trade agreements with India and other developed countries on the new terms of the Free Trade Agreement (FTA). These agreements will also have an impact on the Presidential election there, the US government believes. President Trump had also indicated during his visit to India to sign this contract with India. But this was not possible due to the tough and negative attitude of the government.
Earlier India having broken away from the R.C.E.P. agreement, it has given a message to the whole world that no agreement is acceptable to India by ignoring its economic interests. At the summit of these countries, the Prime Minister himself announced that if India signs this agreement, there will be a flood of cheap Chinese agricultural and industrial products in the country. This agreement was not implemented due to India's tough stand.
Due to the free trade agreement, many of our ancestral businesses are towards the end. India did FTAs from Thailand and Indonesia, after which farmers of Kerala have been incurring huge losses due to rubber imports.
After joining the World Trade Organization, imports have increased so much that the farmers and traders of the country have suffered a lot. Imports are increasing rather than agricultural exports. Growers of betel nut, black pepper, rubber are on the verge of ruin because of imports.
In fact, the RCEP in Ladakh by Tanatani and India. There are attempts by the US for an FTA after separation from the US. India's next proposal in trade negotiations with the US includes a phased reduction in import duties on high-value US agricultural products, a trade margin policy for medical devices and a promise to negotiate a lowering of price restrictions on US products.
The World Trade Organization places restrictions on all developing countries, including India, to discipline the subsidy to farmers. Many developing countries have also stopped subsidizing farmers due to these threats.
Farmers in India barely get a billion-dollar subsidy in a year, but the organization insists that the subsidy is given to the poor for cheaper food grains and cheaper electricity, water and fertilizer, etc. to the farmers should be reduced.
If this sequence continues, the economy of countries like India will collapse. Outside countries also give huge concessions to their farmers for export, so that they can send their goods at cheaper rates. Their losses are borne by their governments, while there is pressure on us to reduce the subsidy given to farmers even after endangering our food security.
Today, we cannot make any agreement on agriculture that will ruin the agricultural system. Many ambitious schemes of the government came into existence in the crisis of transition because our warehouses are full of grain.
The statement of Trade Minister Piyush Goyal has definitely led to the belief that R.C.E.P. Like India will compromise on its own terms. The abolition of grain storage in India has also been included in their agenda. Whereas recently in the US, the proposal to provide agricultural subsidies for the next 10 years has been passed in Parliament.