Background

• Over 20 years, U.S.–India agricultural trade has had limited progress.
• India imports no corn from the U.S. despite domestic shortages.
• U.S. corn industry is highly mechanized, subsidized, and surplus-producing, unlike India’s smallholder-based system.

India’s Corn Scenario

• Corn Demand Drivers: Poultry feed, starch industry, ethanol blending (mandated 20% target by 2025-26).
• India imports corn mainly from Brazil and Ukraine (not the U.S.).
• Why not U.S.?
  • U.S. corn is often genetically modified (GM), while India has not approved GM corn for human/animal consumption.
  • India has a strong precautionary stance on genetically engineered crops.

U.S. Agricultural System vs India

• U.S.: Subsidy-driven, large-scale mechanized farming, GM corn dominant.
• India: Smallholder farmers, restrictive policies, resistance to GM crops.
• India supports its farmers through price support programs (MSP) rather than subsidies like the U.S.

Global Context

• China stopped importing soybeans from the U.S. during the trade war, but later resumed under managed trade agreements.
• U.S. continues to seek markets for surplus crops.
• India remains cautious due to bio-safety, farmer livelihood, and political factors.

India’s Policy Stance

• India allows import of non-GM corn under strict regulation.
• Ethanol blending programs may increase demand but imports are unlikely to include U.S. corn due to the GM issue.
• Domestic push: India prefers self-reliance and protection of farmer interests.

Key Notes:

• India has resisted U.S. corn due to policy, safety, and political concerns.
• Demand is rising due to ethanol blending and poultry feed, but sourcing is from non-U.S. suppliers.
• Importing livestock products remains a sensitive issue.
• India remains skeptical of GM crops and maintains trade protection measures.