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Farmers vs. Free Trade: India’s Rural Backlash Erupts

A controversial India–US trade framework triggers nationwide protests, as farmers warn that cheaper imports could devastate livelihoods and deepen an already fragile agrarian crisis.

4 mins read
Farmers run for cover as police fires tear gas during a protest, as farmers march towards New Delhi to press for better crop prices promised to them in 2021, at Shambhu barrier, a border crossing between Punjab and Haryana states, India, February 21, 2024. REUTERS/Adnan Abidi

In early February 2026, the Indian government under Prime Minister Narendra Modi shocked the nation with the announcement of an interim India–US trade framework. The deal has sparked widespread outrage, particularly among India’s farming communities, who have long borne the brunt of the country’s agricultural policies. This new trade pact, which critics are dubbing a “surrender deal” to the United States, has ignited a firestorm of opposition across rural India, leading to mass protests and a surge of anger directed at the Modi government.

The 2026 India–US trade deal, officially launched under the stewardship of Trade Minister Piyush Goyal, has resulted in a massive outcry from farmers’ organizations, opposition parties, and civil society groups. On February 12, 2026, the country was gripped by a nationwide strike led by the Samyukt Kisan Morcha (an alliance of over 100 farmers’ organizations), the All India Kisan Sabha, and trade unions affiliated with the Congress Party. The strike was a resounding success, with widespread disruptions across public services, transportation, factories, and daily life. The event was marked by fiery speeches from opposition leaders Rahul Gandhi, Priyanka Gandhi Vadra, and Mallikarjun Kharge, who accused Modi of being a puppet of American interests.

The protests were not merely symbolic. As India’s largest employer, with 45% of the population engaged in agriculture and contributing between 15–18% to the country’s GDP, the farming sector plays a vital role in India’s economy. The new trade deal threatens to decimate this sector by opening the floodgates to cheaper and heavily subsidized imports from the United States. Products such as nuts, fruits, grains, and pulses are now set to enter the Indian market at prices with which Indian farmers simply cannot compete. According to agricultural experts, this will drive down prices and severely impact the livelihoods of millions of farmers, especially those already struggling with rising input costs and mounting debt.

The stakes are high. With 86% of India’s farms under two hectares and household debts averaging ₹74,000 ($880), even slight price crashes can spell disaster for 150 million farming households. Farmers are already reeling from rising costs of seeds, fertilizers, and irrigation, which have increased by 20–30% over the past few years. In this fragile state, the trade deal poses a direct threat to their survival.

Trade Minister Piyush Goyal has attempted to downplay these concerns, arguing that the government has implemented safeguards and claiming that 90–95% of key agricultural products such as dairy, poultry, rice, and wheat would be protected under the deal. However, critics have dismissed these claims as hollow, pointing to the lack of transparency regarding tariff lines and the risks posed by genetically modified (GM) crops such as soy and maize. Farmers, already burdened by the uncertainty of their harvests, now face the additional challenge of competing with potentially cheaper, genetically modified imports from the US.

Goyal’s defensive rhetoric has not sat well with the opposition, which has accused him of misleading the public and succumbing to American pressure, especially over India’s oil trade with Russia. As farmers across India voice their frustrations, the government’s attempts to justify the deal only seem to widen the gap between the ruling party and the nation’s rural populace.

Critics argue that this trade deal is emblematic of Modi’s broader neglect of rural India. Despite the prime minister’s repeated claims of championing farmers’ welfare, the reality tells a different story. The crumbling state of India’s agricultural sector is evident in the mounting challenges farmers face: erratic weather patterns that slash yields by 10–15% each year, droughts affecting 60% of districts, widespread water scarcity, and soil degradation across 120 million hectares of land. Furthermore, pests continue to ravage 20–25% of crops, while irrigation covers only 48% of arable land, and mechanization remains stalled at just 40–50%.

Perhaps the most harrowing consequence of this prolonged neglect is the devastating toll of farmer suicides. Since 1995, over 400,000 farmers have taken their lives, unable to cope with the economic and psychological pressures of their profession. In 2022, the National Crime Records Bureau reported more than 11,000 suicides, with similar figures recorded in 2023 and 2024. States such as Maharashtra, Karnataka, and Telangana have borne the brunt of this tragedy, with areas like Marathwada witnessing an alarming increase in farmer suicides, spiking to an average of three deaths per day in early 2025.

Despite the Modi government’s claims of loan waivers and insurance schemes, such as the ₹1.7 lakh crore in loan waivers provided since 2014 and the Pradhan Mantri Fasal Bima Yojana (PMFBY) covering five crore farmers, these initiatives have been little more than band-aids on a gaping wound. These measures have failed to address the core issues plaguing Indian agriculture, including the lack of a fair minimum support price (MSP) for crops, inadequate infrastructure, and the absence of meaningful reforms in land and credit policies.

As the Modi government doubles down on its trade agreements and continues to prioritize international relations over domestic concerns, the voices of farmers and rural communities are being increasingly marginalized. The newly introduced India–US trade pact has only fueled rural anger, with farmer unions and opposition parties demanding the scrapping of the deal and the implementation of a legal MSP system that ensures fair prices for crops.

This crisis is not just about economics; it is a matter of life and death. As farmers continue to struggle against overwhelming odds, their patience is running out. Protests are no longer confined to rural areas; they are spilling over into urban centers, with farmers and labor unions increasingly calling for the ousting of a government they view as indifferent to their suffering. The consequences of this deal are not only economic; they also have the potential to create a deeper social and political rift that could further destabilize an already fragile nation.

The question now is whether Modi’s government will listen to the calls for change or continue to prioritize its relationship with foreign powers over the well-being of its citizens. The future of India’s agricultural sector, and the livelihoods of millions of its farmers, hangs in the balance. It is time for the government to abandon its fixation on short-term trade deals and security concerns and focus on addressing the long-neglected humanitarian crisis unfolding in rural India. The country’s farmers deserve more than empty promises; they deserve dignity, security, and a fair chance at survival.

Muhammad Wasama Khalid

Muhammad Wasama Khalid is a Correspondent and Researcher at Global Affairs. He is pursuing his Bachelors in International Relations at National Defense University (NDU). He has a profound interest in history, politics, current affairs, and international relations. He is an author of Global village space, Global defense insight, Global Affairs, and modern diplomacy. He tweets at @Wasama Khalid and can be reached at Wasamakhalid@gmail.com

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