India-US FTA: NITI Aayog Farm Tariff Cut Plan Criticised
Why in the news
A NITI Aayog paper urged duty cuts on several American farm products in a proposed India-US trade deal. Analysts warned of risks to food security and farm incomes.
Key facts
- It backed scrapping the duty on US rice, citing India’s rice export surplus.
- It also suggested importing GM corn by-products (DDGS) for feed and GM soybean seeds for coastal crushing.
- Farming supports 700+ million people.
| Issue | Concern |
|---|---|
| Rice duty removal | Lessons of PL-480 and GATT show early lock-in of low duties leaves lasting weakness |
| Price volatility | Crashes (2014-16) and spikes (2005-08, 2010-11) ignored |
| WTO stance | May reward lobbies such as the USA Rice Federation |
| GM imports | Weak enforcement risks contamination and export bans |
Way forward
- Tariff flexibility stabilises markets and shields small farmers; any farm opening needs consultation with states, farmer bodies and experts.
Exam angle
- Think tank: NITI Aayog.
- Terms: MSP, DDGS, PL-480.