India-US Trade Deal: Will India Allow GM Crop Imports?
05-Jul-2025 10:54 AM
India-US Trade Deal: Will India Allow GM Crop Imports?
★ Talks around the India-US trade deal are heating up. The US is constantly pressuring India to allow the import of genetically modified (GM) crops—such as soybean and corn.
★ Currently, India does not permit direct imports of GM crops, though oil extracted from GM soybean is allowed.
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★ Government spokespersons have denied reports about allowing GM imports, but expert opinions are divided—some see it as likely, while others firmly reject the possibility.
★ In this situation, an old saying fits well: *“Between the devil and the deep sea.”*
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What if India doesn’t open imports?
★ If India refuses to allow GM crop imports, the US may retaliate by increasing tariffs on Indian products such as rice, spices, processed dry fruits, and guar gum. This would directly affect Indian exports and force India to search for new buyers.
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What if corn imports are allowed?
★ If India opens up to GM corn imports, the first step would be to change its GMO import policy. This would then trigger a series of reforms in import rules, domestic processing, crushing, ethanol production, usage of DDGS (Distillers Dried Grains with Solubles), and even its export regulations.
★ Currently, ethanol in India is produced from domestic corn and rice. Corn is the only crop currently trading near MSP levels.
★ If imported corn starts being used for ethanol, domestic corn demand will decline, impacting Indian farmers significantly.
★ Rice, too, is used for ethanol—its usage would decrease, while the country already has a buffer stock far above the required norms.
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Rising DDGS Pressure?
★ If DDGS made from imported corn is allowed in the domestic feed industry, it could pose a major threat to soybean meal, mustard oil cake, wheat bran, and other feed grains.
★ If the government restricts domestic usage of DDGS, it will need to allow its export. But that would require finding global buyers, setting up testing protocols, clearances, and quality checks—making the process complex and prone to policy loopholes and misuse.
★ If India allows GM crop imports, it won’t just be a policy change—it will shake the entire agri-industrial ecosystem.
★ This decision would deeply affect farmers, domestic industries, and India’s food security.
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Action Point:
★ Clear domestic corn stocks as early as possible.