Farmers Rally in New Delhi Against US Trade Concessions

Protesters demand legal guarantees for crop prices as rising energy costs and import fears intensify pressure on India’s agricultural sector

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Farmers protest over U.S.-India trade framework

Hundreds of farmers and industrial workers gathered in India’s capital on Monday to protest what they described as government concessions to the United States in ongoing trade discussions and to demand a law guaranteeing minimum prices for crops. The demonstration took place near the historic Jantar Mantar observatory, close to the parliamentary complex in New Delhi, where protesters voiced concerns about trade policies and the economic pressures facing India’s agricultural sector.

The rally followed a nationwide agitation earlier last month and comes at a time when farmers are already grappling with rising production costs. Energy prices have surged due to tensions and conflict in the Middle East, adding to the financial burden on growers who depend heavily on diesel-powered equipment such as irrigation pumps and threshers. Demonstrators traveled from neighboring states early in the morning to attend the gathering, with many shielding themselves from the heat while calling for policy changes.

One of the main grievances raised by the protesters relates to India’s agreement to allow imports of distillers dried grains with solubles, commonly known as DDGS. The ethanol byproduct is used in animal feed and in the United States is largely produced from genetically modified corn. Farmers argue that allowing such imports could undermine domestic producers and place additional pressure on local agricultural markets.

Protesters also warned that any move by India to reduce import duties on soybean oil would make American supplies more competitive in the country’s market. India is the world’s largest buyer of vegetable oil, and farmers fear that cheaper imports could damage the livelihoods of local oilseed producers.

Some demonstrators directly criticized the government of Narendra Modi, accusing it of prioritizing international trade deals over the interests of domestic farmers. A grain farmer from the northern state of Haryana said that allowing agricultural imports at zero duty would severely harm local producers and called for the proposed trade agreement to be canceled.

The rally also revived a long-standing demand for a legal guarantee of minimum support prices for crops. Farmers argue that such a law would protect them from volatile markets and rising input costs. Currently, the government announces assured floor prices for about two dozen crops, but procurement largely takes place only in a few states where the Food Corporation of India and other state-run agencies purchase mainly wheat and rice for national welfare programs.

Those programs supply free grain to roughly 800 million people each month, making government procurement a critical pillar of India’s food security system. However, in many regions where official buying is limited or absent, market prices can drop sharply during harvest seasons, leaving farmers with little protection against sudden declines in income.

The issue has remained unresolved since a major wave of farmer protests in 2021. At that time, farmers ended a year-long agitation after the Modi administration repealed three controversial agricultural reform laws and promised to consider legal backing for minimum support prices. Farmers say progress toward that promise has been slow.

Participants in Monday’s demonstration warned that without stronger protections, rural livelihoods would remain under threat. Many argued that a legal guarantee for minimum prices across all crops is necessary to ensure stable incomes and safeguard the future of farming communities across the country.

Sri Lanka Guardian

The Sri Lanka Guardian is an online web portal founded in August 2007 by a group of concerned Sri Lankan citizens including journalists, activists, academics and retired civil servants. We are independent and non-profit. Email: editor@slguardian.org

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