Thousands of farmers opposing a proposed trade deal with the US marched toward Delhi on Tuesday, presenting another challenge to the government of Indian Prime Minister Narendra Modi, which is already facing a student protest in the capital.

The farmers’ unions say New Delhi’s proposed trade deal could hurt India’s agriculture sector by opening the door to cheaper American food and hurt domestic farmers, livestock and dairy producers, as well as small traders.

The trade deal is still not final despite months of negotiations. Indian Trade Minister Piyush Goyal said last month that New Delhi “cannot enter into force a US deal” until the “framework for getting a competitive advantage is finalized.”

Farm organizations from the northern states of Punjab, Haryana, Rajasthan, Himachal Pradesh and Uttar Pradesh are spearheading the protests. Farmers from Punjab were stopped by police in Shambhu, on the state’s border with Haryana. However, others have continued on to Delhi.

On Monday, thousands of students clashed with police in the Indian capital, demanding the resignation of the federal education minister over leaks of question papers for a national medical entrance test.

They are continuing their protest in central Delhi, but have said they will not march on parliament again, and have accused the police of hurting students.

The US agricultural sector has lobbied the Trump administration, seeking wider access to Indian markets, lower tariffs, and the relaxation of curbs on dairy products, poultry, and fisheries.

India’s government claims the nation’s agricultural interests would be protected and that sensitive farm products have been kept out of the negotiations with the US.

However, a trade pact that opens up agriculture could impact 80 million rural families and send shockwaves through India’s agrarian economy, activists have warned. The farming sector employs about 46.1% of the workforce and supports close to 55% of India’s population of 1.4 billion.

Protesting outfits also fear that the scope of the trade deal would eventually widen beyond a few agricultural commodities and cover dairy, industry, digital trade, e-commerce, government procurement, intellectual property rights, and services.
The US has been using the threat of trade tariffs as a pressure tactic to strike deals and gain political leverage.
Washington now has a 10% tariff in place on Indian goods, after the US Supreme Court struck down President Trump’s initial steep tariffs as illegal earlier this year. Those temporary tariffs are set to lapse on Friday.

However, the US announced 25% tariffs on Brazil earlier this month under a different law, raising the possibility that Washington is likely to slap similar duties on India, too, after the temporary ones lapse.