India-US Trade Deal has been clearly positive for the share market and exporters. Its clear impact was visible in Textile and Auto sectors, but there are serious risks hidden in it for Agriculture sector and farmers.

Under the deal, India will gradually move towards reducing tariff and non-tariff barriers on US products to zero. This may increase imports of cheap soybean, wheat, maize, dairy and seeds from the US.

US agriculture is heavily subsidized, while Indian farmers get limited support. According to SBI report, if the dairy sector opens, there may be an annual loss of up to ₹ 1.03 lakh crore and milk prices may fall by 15%.

There is a possibility of increase in pressure on MSP and PDS also. Cheap imports may cause domestic crop prices to fall, which will increase the risk of loan and unemployment for small farmers.

Experts believe that safeguard duty and protective measures will be necessary, otherwise this deal may prove to be a double-edged sword for rural India.