Why Protesting Farmers in Punjab Want India to Withdraw from WTO: A Lesson for Nepal’s Agrarian Struggles

The ongoing farmers’ protests in Punjab and Haryana have taken a significant ideological turn, with demands extending beyond the legalization of the Minimum Support Price (MSP) for all crops. Among their key demands is a call for India to withdraw from the World Trade Organization (WTO) and suspend all free trade agreements under its Agreement on Agriculture (AoA). Farmers argue that the WTO’s policies, particularly those under the AoA, disproportionately favor developed nations while undermining the interests of small and marginal farmers in developing countries like India.

From a Nepalese leftist perspective, this struggle not only sheds light on the injustices of global neoliberal policies but also resonates deeply with Nepal’s own challenges in safeguarding its agrarian economy and ensuring food sovereignty.


WTO’s Agreement on Agriculture: Biased Against the Global South

The WTO’s AoA was ostensibly created to establish fairer trade practices by reducing subsidies and tariffs in agriculture. However, as the protesting farmers rightly point out, it has primarily benefited developed nations while placing disproportionate restrictions on countries like India. Jagmohan Singh, General Secretary of the Bharti Kisan Union (Dakuanda), highlights how developed countries exploit loopholes to provide massive subsidies to their farmers while pressuring developing nations to reduce essential domestic supports like MSP and subsidies.

For Nepal, this critique is highly relevant. With its agrarian economy still struggling under the pressures of globalization, Nepalese farmers face similar challenges of cheap imports, limited access to subsidies, and declining rural livelihoods. If Nepal were to further integrate into such unfair global systems without adequate safeguards, it could face even greater threats to its agricultural sovereignty.


The Struggle Against Subsidy Restrictions and Food Security Threats

Punjab’s agrarian economy, heavily dependent on wheat and paddy, relies on public procurement under the MSP system. WTO’s restrictions on subsidies and public procurement are seen as direct threats to this framework, which also supports India’s Public Distribution System (PDS). The PDS provides affordable food to millions and is critical for food security. Singh notes that WTO policies inflate India’s Market Price Support (MPS) calculations using outdated price benchmarks, leaving little room for domestic flexibility.

Similarly, Nepal’s agricultural sector, which remains the backbone of the national economy, is heavily reliant on small-scale farmers. Over 86% of Nepalese farmers fall into this category, with limited access to modern technology, markets, and state support. Global trade liberalization has already introduced a flood of cheap agricultural imports, destabilizing local markets and threatening food security. If Nepal were to align with policies like those under the WTO’s AoA, it could further erode the fragile foundations of its agrarian economy.


The Need for Sovereignty Over Agriculture

The Punjab farmers’ call for withdrawal from the WTO is fundamentally a call for sovereignty over agriculture—a principle that resonates strongly with Nepalese leftist and communist ideologies. In February 2024, Punjab’s farmers observed ‘Quit WTO Day,’ highlighting how the organization’s policies undermine food security and livelihoods. This resonates with Nepal’s historical struggles against external interference in its economic policies, particularly in agriculture, where self-reliance has been a cornerstone of the communist vision.

For Nepal, the lessons are clear: preserving agricultural sovereignty requires resisting policies that prioritize global capital over local livelihoods. The WTO’s restrictions on subsidies, public procurement, and protective tariffs align with neoliberal agendas that erode state support for small farmers, leaving them vulnerable to market forces dominated by multinational corporations.


The Role of Leftist Movements

The Punjab farmers’ movement demonstrates the critical role of organized, grassroots resistance in challenging global injustices. For Nepalese leftist parties, which have historically championed the cause of farmers and rural workers, this movement serves as an important reminder of the need to stay aligned with the interests of the rural poor. While Nepal’s communist parties have historically advocated for land reform and rural development, recent trends of internal factionalism and ideological drift risk weakening their ability to address the pressing issues of food security and agricultural sustainability.


A Call for Unity and Resistance

The Punjab farmers’ protests, now in their eleventh month, have garnered international attention and inspired similar struggles across India. For Nepal, this is a moment to reflect on the importance of protecting small farmers from the adverse impacts of global trade agreements. Policies that prioritize corporate profits over people’s livelihoods not only threaten food security but also deepen rural poverty and inequality.

Nepalese communists and progressives must recognize the parallels between the struggles of Indian farmers and the challenges facing Nepal’s agrarian communities. The fight against the neoliberal agenda of the WTO must be seen as part of a broader struggle for social and economic justice in the Global South.


Lessons for Nepal

The farmers’ demand for India to withdraw from the WTO is a bold assertion of their right to self-determination in agriculture. Nepal, as a smaller and more vulnerable economy, must take heed of these demands and proactively safeguard its agricultural policies from similar external pressures. Key measures could include:

  1. Strengthening Domestic Support: Ensuring that small farmers have access to subsidies, credit, and modern technology.
  2. Prioritizing Food Sovereignty: Maintaining control over agricultural policies to meet the needs of the local population rather than global markets.
  3. Building Regional Solidarity: Collaborating with neighboring countries like India to resist exploitative global trade practices.
  4. Promoting Agroecology: Investing in sustainable farming practices to reduce dependency on imports and enhance resilience.

The Punjab farmers’ protests are not just an Indian struggle but a broader resistance against the exploitative policies of global institutions like the WTO. For Nepal, which shares many of the same vulnerabilities as India’s small farmers, this movement offers a critical perspective on the importance of agricultural sovereignty, grassroots resistance, and regional solidarity. By learning from these struggles, Nepalese communists and progressives can strengthen their efforts to protect the rights and livelihoods of farmers, ensuring that the country’s agrarian foundations remain intact in the face of global pressures.

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