How Three New Societies Are Shielding Agriculture from Global Trade Shocks

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How Three New Societies Are Shielding Agriculture from Global Trade Shocks

Wednesday, 12 March 2025 | Binod Anand

The world is witnessing a major realignment in global trade as the US tariff war disrupts supply chains and reshapes agricultural exports. Countries that once relied on established trade routes are now facing uncertainty, forcing them to look for alternative suppliers. In this evolving landscape, many fear that India’s agriculture exports might be affected, but the reality is different. India is not just insulated from these shocks; it is positioned to thrive. The reason behind this resilience lies in a historic transformation—the creation of three new multistate cooperative societies.

These cooperatives are more than just policy initiatives, they are a strategic shield, ensuring that Indian farmers, agribusinesses, and exporters do not become victims of global trade volatility. Instead of fearing disruptions, India is using this moment to expand its global agricultural footprint, leveraging the power of cooperatives to make its exports stronger, more competitive, and more farmer-centric.The US has been engaged in a prolonged trade war, particularly with China and the European Union.

American tariffs on Chinese goods led to retaliatory measures, including high tariffs on US agricultural products such as soybeans, corn, and pork. These policies disrupted global supply chains, forcing importing countries to search for new suppliers. Historically, such trade wars create volatility, where smaller agricultural exporters struggle to compete with larger economies.

Many feared that India, which is still building its export infrastructure, might lose out in the global realignment. However, this time, India has turned the challenge into an opportunity—by strategically strengthening its cooperative economic framework to ensure that Indian agriculture emerges stronger, not weaker.

The government’s bold decision to establish three new multistate cooperative societies has changed the game for Indian agriculture exports. These cooperatives are not just support structures; they are economic engines, ensuring that Indian farmers and agri-businesses are directly connected to global markets without dependency on middlemen or volatile international policies. The National Multi-State Cooperative Export Society is the backbone of India’s new export strategy, enabling farmers to directly participate in exports, giving them better prices, and eliminating exploitative middlemen.

By standardising quality, improving logistics, and ensuring compliance with global trade requirements, this cooperative will make India a reliable alternative to disrupted supply chains elsewhere. The National Multi-State Cooperative Organic Society will capitalise on the growing demand for organic and chemical-free produce, helping Indian farmers secure premium prices in global trade. This structured, cooperative- driven supply chain will allow India to emerge as a leading supplier of organic food. The National Multi-State Cooperative Seed Society will strengthen both domestic productivity and India’s growing seed export market by ensuring that farmers have access to high-quality, export-ready seeds.

By reducing dependency on foreign seed corporations, India will minimise trade risks and position itself as a global leader in agricultural inputs.Unlike previous trade disruptions where Indian farmers suffered from price fluctuations, this time, India is protected by a cooperative-led economic framework that ensures direct market access, diversified global partnerships, and better price stability.

With cooperatives facilitating direct exports, India’s agricultural trade is less dependent on traditional intermediaries, making it immune to tariff shocks. While many countries struggle due to over-dependence on the US or China, India has expanded trade agreements with the Middle East, Africa, and Southeast Asia, ensuring multiple market opportunities. By focusing on processed and high-value agricultural goods, India is building a resilient trade model that withstands market fluctuations.

Moreover, removing middlemen and securing better trade deals through cooperatives guarantees that farmers are not at the mercy of international price crashes. The rising global demand for organic and speciality agricultural imports further strengthens India’s position as a key supplier, allowing the country to fill the supply gaps created by disrupted trade routes.While many countries are struggling with the effects of the US tariff war, India is building a future-proof agricultural economy.

The creation of these three multistate cooperatives is not just a response to global trade challenges—it is a proactive step towards making India the world’s next agricultural export powerhouse. By embracing cooperative-led trade, direct farmer participation, and a strong focus on value addition, India is proving that no tariff war can derail its agricultural success story.

Instead of being vulnerable to shifting trade policies, Indian farmers are now in control, charting a new course for global leadership in agriculture. This transformation is not just about increasing exports; it is about reshaping the very foundation of India’s rural economy through cooperation.As the world looks for stable, reliable, and high-quality agricultural suppliers, India—powered by its new cooperative revolution—stands ready to meet this demand. However, the success of this model will depend on the cooperation among cooperatives, ensuring that they work in harmony to create a seamless economic framework that benefits farmers at every level. The cooperative economic framework is not just about collective trade—it is about collective prosperity.

It is a movement that redefines how India participates in global trade, ensuring that its farmers are not just contributors but decision-makers in the global agricultural economy. By fostering deeper collaboration between cooperatives, ensuring knowledge-sharing, and building an ecosystem of trust, India is setting an example for the world on how cooperation can drive economic strength.

Conclusion

India’s response to global trade disruptions is not just defensive—it is transformative. By establishing three powerful multistate cooperative societies, the country has ensured that its agricultural exports are resilient, competitive, and farmer-driven.

These cooperatives are more than economic instruments; they are a strategic shield that insulates Indian agriculture from tariff shocks and volatile global policies.Instead of relying on traditional supply chains, India is proactively building new trade alliances, particularly in the Middle East, Africa, and Southeast Asia. By focusing on high-value and organic products, streamlining logistics, and removing exploitative middlemen, the country is positioning itself as a reliable global supplier.

The National Multi-State Cooperative Export, Organic, and Seed Societies collectively empower farmers, giving them direct market access and better price stability.

As the world searches for stable agricultural partners, India is emerging as a global leader, proving that cooperative-led trade is the key to sustainable growth. This is not just about increasing exports; it is about reshaping India’s rural economy and ensuring that farmers are at the center of global trade. The cooperative movement is India’s answer to economic resilience, making its agriculture future-proof.

This is not just a policy shift; it is a transformation that will define the future of Indian agriculture for decades to come. Cooperation is not just a principle—it is the foundation of India’s new economic resilience.

Jai Kisan! Jai Cooperative Movement!

(The writer was a member of the high-level MSP committee, Ministry of Agriculture. Views expressed are personal)

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