Punjab BJP Rebuts Opposition Claims on Indo-US Trade Deal
In Chandigarh, the Punjab unit of the Bharatiya Janata Party (BJP) on Friday strongly criticized opposition parties for disseminating what they termed as "a false narrative" regarding the Indo-US trade agreement. During a press conference, BJP leaders emphasized that economic advancement hinges on a nation's capacity to market its raw materials and manufactured goods globally.
Economic Impact and Employment Generation
The leaders argued that heightened exports are instrumental in establishing new factories, which subsequently create job opportunities for the youth across Punjab and India. They underscored that this trade dynamic is pivotal for fostering industrial growth and reducing unemployment rates.
Clarifications on Agricultural Concessions
Punjab BJP leader Charanjit Singh Brar addressed specific concerns, asserting that opposition groups are misleading farmers and the public by alleging concessions granted to the US at the expense of Punjab's agricultural sector. Brar provided detailed clarifications:
- Major Crops: No concessions were given for importing key Punjab crops such as wheat, rice, barley, maize, soybean, millet, oats, ethanol varieties, mustard, cotton, kabuli chana, moong, and others from the US into India.
- Vegetables: Imports of vegetables like onion, potato, peas, beans, mushrooms, bottle gourd, pumpkin, cucumber, capsicum, and okra from the US are not permitted. Conversely, these vegetables and processed products can be exported from India to the US at a 0% tariff.
- Dairy Products: Milk and its derivatives, including paneer, cream, butter, milk powder, and ghee, face no relaxation for entry into India. However, Indian dairy products enjoy zero-tariff access to the US market.
- Spices: Items such as black pepper, clove, cardamom, dry and green chilli, coriander, cumin, asafoetida, ginger, turmeric, carom seeds, fennel, fenugreek, mustard, mustard seeds, tea, coffee, and processed powders are not granted import concessions. These can be exported to the US at 0% tariff.
- Fruits: No relaxation exists for importing fruits like mango, banana, guava, pineapple, coconut, cashew, orange, grapefruit, kinnow, lemon, grapes, cherry, dried plum, tamarind, dried apple, water chestnut kernel, and dates into India.
Quota System and Import Details
Brar highlighted that minimum purchase quotas have been established for certain items to regulate imports:
- Animal Feed: Approximately 5 crore tonnes of feed are imported into India annually, with a quota of 1% (5 lakh tonnes) allocated from the US.
- Apples: Around 5.50 lakh tonnes of apples are imported, with a fixed quota of 1 lakh tonne from the US. Previously priced at Rs 75 per kg, these apples are now expected to cost about Rs 100 per kg.
- Almonds: Last year, 2.77 lakh tonnes of almonds were imported, with 2.50 lakh tonnes sourced from the US. A new quota of 1 lakh tonne is now in place.
- Soybean Oil: About 5.50 lakh tonnes are imported, with 2 lakh tonnes from the US in 2024-25, yet only a 1 lakh tonne quota is fixed.
Brar maintained that these items are already imported in substantial quantities, and by implementing quotas while enabling zero-tariff exports of farmers' crops and products to the US, Punjab and national farmers stand to gain significantly.
Broader Sectoral Benefits
BJP leaders also pointed out that beyond agriculture, sectors such as cotton and textiles, leather, toys, component manufacturing for Punjab industries, and household goods are poised for growth under this trade framework.
Comparative Tariff Analysis
They argued that India faces a tariff of around 18%, which is lower compared to competing nations: China at 35%, Vietnam at 20%, Bangladesh at 20%, and Indonesia at 19%. This positions India more favorably in international trade, potentially boosting export competitiveness and economic resilience.
