India-US Trade Deal: Will India Allow GM Crop Imports?
05-Jul-2025 11:26 AM
India-US Trade Deal: Will India Allow GM Crop Imports?
★ Discussions around the proposed India-US trade agreement are intensifying. The United States is consistently pressuring India to allow the import of genetically modified (GM) crops—particularly soybean and corn.
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What is India’s current policy?
★ At present, India prohibits the direct import of any GM crops. However, the import of oil extracted from GM soybean is permitted.
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Government stance and expert opinions
★ Government spokespersons have denied any ongoing policy changes related to GM crop imports. However, expert opinions remain divided—some see it as a likely development, while others warn of its potential risks to Indian farmers and industries.
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If India does not allow GM imports
★ Should India refuse to open its doors to GM crop imports, the US may retaliate by increasing tariffs on Indian exports such as rice, spices, processed dry fruits, and guar gum. This could hurt Indian exports and compel India to seek new trade partners.
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If India allows GM soybean imports
★ If India agrees to import GM soybean, the first step would involve changes in its GMO import policy. This would then necessitate broad reforms in import procedures, domestic processing, crushing, and the usage of oil and byproducts.
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Impact on the edible oil industry
★ Processing GM soybean will increase the domestic availability of both edible oil and oilmeal. While this could reduce the need to import soyoil, it could further depress oilmeal prices, which are already under pressure due to DDGS (Distillers Dried Grains with Solubles).
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Key concern—what happens to the byproducts?
★ If the government does not allow domestic sale of the byproducts, India will have to explore export options. However, India’s oilmeal exports are already sluggish, and GMO soymeal is priced lower globally compared to non-GMO variants. Without specific incentives, such exports may not be viable.
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★ If India permits GM crop imports, it won’t just be a trade policy shift—it will have far-reaching implications for the entire agri-industrial ecosystem.
★ It could directly affect farmer incomes, destabilize the domestic edible oil industry, and raise critical concerns about India's food and trade security.