Tariffs – Pawar Raises Alarm Over Farm Sector Risks in US Trade Deal
Tariffs – Senior political leader Sharad Pawar has cautioned that provisions in the newly announced trade understanding between India and the United States could pose challenges for India’s agricultural sector, particularly if large volumes of American farm goods are allowed into the domestic market.
Speaking to reporters in Baramati on Wednesday, Sharad Pawar, chief of the Nationalist Congress Party (Sharad Pawar faction) and a former Union agriculture minister, said greater clarity on the agreement was expected within the next couple of days. Until then, he advised restraint in drawing firm conclusions but flagged agriculture as a sensitive area requiring close attention.
Awaiting clarity on the trade framework
Pawar noted that details of the recent India–US trade arrangement had not yet been fully made public. He said the government’s position would become clearer once the fine print was available.
“We can comment in detail only after all aspects of the agreement are known,” he said, adding that early indications suggested certain clauses could open the door for agricultural exports from the United States to India. Such a move, he warned, could have serious implications for Indian farmers if not carefully managed.
Concerns over impact on Indian agriculture
Highlighting the imbalance between the two economies, Pawar said the United States is a major global agricultural exporter with the capacity to supply farm produce on a large scale. If these products enter India at low or zero tariffs, domestic producers could struggle to compete.
“When a powerful economy exports agricultural goods in bulk, it often disrupts local markets in importing countries,” he said. Pawar expressed hope that safeguards would be built into the agreement to protect India’s farming community and prevent undue pressure on rural livelihoods.
Background of recent tariff decisions
The comments come against the backdrop of recent tariff announcements by Washington. The United States had earlier imposed tariffs of up to 50 per cent on Indian goods, including a 25 per cent levy linked to India’s purchases of Russian oil. Earlier this week, US President Donald Trump said that India and the United States had reached a trade deal aimed at resetting economic ties.
On the Indian side, Prime Minister Narendra Modi welcomed the development, stating that tariffs on made-in-India products exported to the US would be reduced to 18 per cent. He described the move as a positive step for Indian manufacturers and exporters.
US perspective on the agreement
From Washington, White House Press Secretary Karoline Leavitt said the agreement represented a significant win for the American economy. She stated that India had committed to purchasing goods worth USD 500 billion from the United States, including energy, transportation equipment, and agricultural products.
According to her, while Indian exports to the US would face an 18 per cent tariff, American exports entering India would be subject to zero tariffs. She said the arrangement would benefit American workers, businesses, and consumers.
Absence from Parliament and budget remarks
During the interaction, Pawar also addressed his absence from the ongoing Budget session of Parliament. He said he was unable to attend due to a personal family tragedy involving his nephew and fellow NCP leader Ajit Pawar.
“I have never missed a Budget session before,” he said. “This time, circumstances did not allow me to travel to Delhi or study the Budget in detail.”
Initial reaction to the Union Budget
Based on media reports he had reviewed, Pawar said the Union Budget appeared to have avoided measures that could have placed additional burdens on ordinary citizens. He described this as a reassuring sign.
At the same time, he noted that expectations for stronger, more concrete steps to drive development remained. Pawar suggested that a fuller assessment would be possible only after detailed discussions and parliamentary scrutiny.
As attention now turns to the finer points of the India–US trade deal, stakeholders across sectors, especially agriculture, are waiting to see how the agreement balances global trade ambitions with domestic economic priorities.