A Deep Dive into India’s Agriculture Crisis
Bharat Global Time | May 27, 2025
❝When the world opens its markets, why do Indian farmers end up closing theirs?❞
It’s a hard question. One that doesn’t have easy answers — but it’s time we start asking it seriously.
India has been aggressively negotiating Free Trade Agreements (FTAs) in recent years. From Australia and the UAE to the EU and the UK — our trade ties are expanding rapidly. The goal? Boost exports, bring in investment, and make India a global manufacturing and economic hub.
But in this rush to integrate with the world economy, our farmers — the backbone of Bharat — are being left behind.
Why? Because FTAs are not neutral deals — they often carry hidden costs for countries with large, vulnerable agricultural populations. And India, where over 60% of the population still depends on agriculture, is a classic case.
Let’s explore exactly how FTAs are quietly squeezing the Indian kisaan — and why the government must act before it’s too late.
What Is a Free Trade Agreement (FTA), Really?
A Free Trade Agreement is a treaty between two or more countries to reduce or eliminate tariffs (import duties) and non-tariff barriers (like quotas, licensing, etc.) on traded goods and services.
This sounds great — cheaper imports for consumers, access to bigger markets for exporters.
But here’s the catch — FTAs work best for highly industrialized or capital-intensive economies, not agrarian ones like India.
The Ground Reality: How FTAs Affect Indian Agriculture
1. Flood of Cheap Agricultural Imports
Every time India signs an FTA with a country like Australia, Canada, or ASEAN members, it opens the floodgates for cheap agri-imports like:
- Dairy from Australia and New Zealand
- Pulses and grains from Canada and Ukraine
- Edible oils from Malaysia and Indonesia
- Fruits and vegetables from Thailand, Egypt, and Iran
These products often arrive subsidized, mass-produced, and priced lower than Indian cost of production.
Indian farmers simply cannot compete.
Their produce — wheat, pulses, onions, apples — either sits unsold or sells at throwaway prices.
2. Price Crash and Income Losses
Let’s take an example.
When India signed the FTA with ASEAN, it led to a surge in palm oil imports from Malaysia and Indonesia. This directly hit mustard and sunflower farmers in states like Rajasthan and Madhya Pradesh.
- Their oilseeds fetched lower prices in local markets.
- Many stopped growing these crops entirely.
- Income from farming dipped dangerously low.
This story repeats across crops — from apples in Himachal to wheat in Punjab and onions in Maharashtra.
3. FTAs Have No Safety Nets
In most developed countries, governments offer subsidies, minimum price guarantees, and compensation when trade deals hurt farmers.
In India? There’s:
- No universal crop insurance
- No loss compensation for import shocks
- Weak or unenforced MSP (Minimum Support Price)
So when global market pressure hits, Indian farmers absorb 100% of the damage.
And for small and marginal farmers — who make up over 85% of India’s farming community — that damage is often permanent.
4. MSP Becomes Irrelevant in Global Competition
Let’s not forget — FTAs ignore India’s internal pricing systems. Even if the government sets MSP for wheat or pulses, it has no control over global market prices.
So if cheaper Canadian or Ukrainian wheat floods Indian markets due to an FTA, what good is MSP?
Private traders will naturally choose cheaper imports, and MSP becomes a paper promise that doesn’t translate into real protection.
5. Corporate Farming Wins, Rural Farming Dies
Some defenders of FTAs argue that they create export opportunities. Sure — big agribusinesses benefit:
- Processed food companies
- Seed and fertilizer giants
- Multinational agro-exporters
But the average Indian farmer, with 1–2 acres of land, no cold storage, no logistics, and zero market access, gets nothing.
In fact, they get priced out of their own local markets.
6. Unfair Trade Terms and Pressure to Conform
In many FTAs, India is pressured to:
- Lower tariffs on agricultural imports
- Remove restrictions on genetically modified seeds (GMOs)
- Liberalize land and water use laws
- Reduce subsidies to avoid violating WTO norms
All of this erodes India’s food sovereignty and turns agriculture into a global commodity game, not a livelihood for local communities.
Case Studies: Real Impact of FTAs on Indian Farmers
Apple Farmers of Himachal Pradesh
FTAs with Iran and Afghanistan allowed cheaper apples into Indian markets.
Result: Apple prices in Himachal fell by 30–40%. Many orchards are running at a loss.
Onion Growers of Maharashtra
Onions from Egypt flooded markets due to relaxed import rules.
Result: Local onions in Nashik and Pune saw price crashes during peak harvest.
Pulses Crisis in Bundelkhand
FTA-fueled pulse imports from Myanmar and Canada disrupted prices.
Result: Local urad and arhar farmers had to sell below MSP or dump produce.
My Opinion: Trade Cannot Be Blind to Bharat
Trade is not the enemy. But blind, one-sided trade deals are.
India must protect its agrarian interests before signing any FTA. Agriculture isn’t just another industry — it’s about rural employment, food security, and national dignity.
We need:
- Agriculture Exclusion Lists in FTAs
- Smart Tariff Design to protect vulnerable crops
- Trade-triggered MSP enforcement
- Emergency safeguard clauses (like quotas, import restrictions)
- Kisaan representatives at trade negotiation tables
Final Word: No Farmer, No Nation
Free trade isn’t really “free” when it comes at the cost of farmer suicides, mass debt, and rural collapse.
As India prepares to sign more FTAs in 2025 and beyond, it must remember:
No economy can rise while its farmers fall.
No Viksit Bharat dream is complete without a protected and prosperous kisaan.
What’s your take? Should farmers be protected from FTAs? Or is this just the price of global competition? Let’s debate in the comment
