India-US Trade Deal Poses Grave Threat to Punjab's Farmers and Small Industries
Congress leader and former Punjab health minister Balbir Singh Sidhu has issued a stark warning, labeling the proposed India-US trade deal as a serious threat to Punjab's agrarian economy, dairy sector, and small-scale industries. Speaking on Thursday, Sidhu emphasized that farmers in the state are already grappling with escalating input costs and diminishing incomes, making them highly vulnerable to further economic pressures.
Agricultural Sector Under Siege
Sidhu expressed deep concern that opening Indian markets to heavily subsidized American agricultural products would lead to a further depression in crop prices. This, he argued, could push small and marginal farmers into deeper financial distress. He criticized such trade policies, alleging they primarily benefit large corporations while disregarding the harsh realities faced by agrarian states like Punjab.
"There is still no legal guarantee on Minimum Support Price (MSP), and there is an alleged lack of transparency in the ongoing trade negotiations," Sidhu stated. "This deal puts corporate interests above Punjab's farmers, dairy producers, and small businesses. The Congress will firmly oppose any agreement that sacrifices livelihoods and economic stability."
Dairy Farming: The Backbone of Rural Economy
Expressing strong apprehension over the dairy sector, Sidhu highlighted that dairy farming provides a daily income to lakhs of rural households in Punjab, serving as a critical backbone of the rural economy. He warned that the opening of the dairy sector under the proposed agreement could result in large-scale imports of cheap milk powder and other dairy products.
"This influx of imported dairy goods could lead to a crash in procurement prices and weaken the cooperative structure that sustains farmers," Sidhu cautioned. The potential destabilization of this sector threatens not only individual livelihoods but also the broader economic fabric of rural Punjab.
Small Industries Face Severe Competition
Sidhu also pointed to the severe risks facing Punjab's micro, small, and medium enterprises (MSMEs). He asserted that these industries could incur significant losses due to competition from large, subsidized American companies. This competition, he warned, might lead to widespread job losses across industrial towns and clusters, exacerbating unemployment and economic instability in the region.
Call for Government Action
In light of these threats, Sidhu urged the central government to prioritize the protection of farmers, dairy stakeholders, and small industries before finalizing any international trade commitments. He called for greater transparency in negotiations and stronger safeguards to ensure that local economies are not sacrificed for corporate gains.
The concerns raised by Sidhu echo broader apprehensions among farmer leaders, who have also questioned the unrestricted import of agricultural products under the proposed deal and threatened mass protests if their interests are not adequately protected.
