Strong Resistance Mounts Against U.S. Push for Increased Corn Imports

10-Jul-2025 03:06 PM

New Delhi. Although the United States has been persistently pressuring India to open its market to genetically modified (GM) corn as part of the ongoing negotiations for a bilateral free trade agreement (FTA), Indian negotiators are strongly opposing the move.

Experts say Indian officials have clearly stated that GM corn is currently banned for production, import, trade, and commercialization in the country.

Occasionally, under the Tariff Rate Quota (TRQ) system, India allows imports of up to 5 lakh tonnes of non-GM corn at a concessional duty rate of 15 percent.

Otherwise, heavy customs duties are imposed on regular corn imports, and any reduction in these duties could severely affect domestic corn producers and lead to a decline in local production.

India's Ministry of Agriculture and the Department of Animal Husbandry and Fisheries have both raised serious concerns over lowering import duties on corn. They argue that doing so would compromise the interests of millions of Indian farmers.

Currently, corn prices are hovering around or above the minimum support price (MSP), allowing farmers to earn reasonable profits. A decline in prices due to cheap imports would reduce the appeal of maize cultivation and could increase India's long-term dependence on foreign corn.

Efforts are currently underway to meet the rising domestic demand for maize—used both for food and as animal feed—through increased domestic production.

However, trade analysts offer a slightly different view. They note that India has previously allowed duty-free corn imports from countries like Ukraine and Myanmar without causing any significant disruption to domestic prices.

But they also caution that this situation may not be comparable to imports from the United States, which is the world’s largest producer and exporter of corn.

The scale and price competitiveness of US maize could potentially have a much larger impact on India’s domestic market.