Goyal’s US deal assurance

Union Commerce Minister Piyush Goyal’s remarks about India entering international trade deals only if they serve the country’s interests are reassuring in tone. But for thousands of apple growers in Kashmir, this assurance will ring hollow unless the government actively steps in to protect one of the Valley’s most vital agricultural sectors - one that has already been undermined by unchecked imports of foreign apples.

India’s ongoing trade negotiations with the United States are turning out to be tricky. The US administration under Trump has aggressively sought more access to India’s market for US products at lower tarrifs. This would also entail more access for the US apples, which, in turn, could further limit the market for Kashmiri apples in their own country, also impacting their prices. This is why the need for such agreements to be grounded in the lived realities of Indian farmers, particularly in conflict-prone and economically fragile regions like Kashmir. The apple industry in Kashmir Valley is not just a source of livelihood; it is the backbone of the region’s rural economy. It makes up 6.8 percent of J&K’s GDP, employing over 3.5 million people directly and indirectly.

In recent years, the influx of cheaper Iranian apples, often misdeclared as Afghan produce to exploit zero-duty access under the South Asian Free Trade Agreement (SAFTA), has wrought havoc on Kashmiri apple growers. Prices have crashed. Cold storages in the Valley have overflowed. Many farmers are forced to sell below production cost. Editorials in this paper have previously highlighted how these imports, aided by loopholes in policy and lax customs enforcement, have crippled an industry already strained by climate change and political instability.

Goyal’s assertion that “India always puts the country’s interest first” must therefore be tested against this backdrop. If trade agreement with the US leads to cheaper imports that flood Indian markets without any safeguards for local producers, it may serve urban consumers and traders, but it leaves primary producers vulnerable. This is why, Goyal’s reassurance to Indian industry is welcome. Any India-US trade deal can’t be to the detriment of the larger interest of India’s economy. And this message has to be conveyed loud and clear to the Trump administration.