Niti Aayog withdraws contentious paper on farm trade with US, confirms planning minister

Niti Aayog has withdrawn its controversial paper

NITI Aayog has withdrawn its controversial working paper that proposed concessions to the United States on imports of soybean oil and other key agricultural items.

Planning Minister Rao Inderjit Singh confirmed the development to Moneycontrol. “The report now stands withdrawn,” Singh said.

The paper raised eyebrows as India and the US try to seal a mini-deal ahead of July 9 when the pause on Trump tariffs ends. Agriculture and  dairy have emerged as a sticking point, with the US seeking greater access to Indian  markets, Moneycontrol has reported. Both are hot button issues for India, as they have a bearing on livelihood of millions of farmers.

The paper, Promoting India-US Agricultural Trade Under the New US Trade Regime, was authored by Raka Saxena, senior adviser (agriculture policy), NITI Aayog, and member Ramesh Chand. Released in May, it drew sharp criticism from farmer groups and industry associations.

“There have been inter-ministerial consultations within the government... some concerns were raised given the sensitivity of the issue. NITI Aayog might come up with a revised paper,” a government official familiar with the matter said, requesting anonymity.

The paper proposed the import of genetically modified (GM) soybean seeds from the US for oil extraction at port-based processing units, with the residual meal intended for export to meet global demand. It suggested that importing GM products like soybean seeds under strict regulatory controls could be viable.

"India is the largest importer of edible oil in the world, and the US has a large surplus of genetically modified soybean. India can offer some concession to the US on soybean oil imports to address trade imbalances without affecting domestic production," the paper argued.

India has traditionally taken a cautious stance on GM crop imports, citing potential environmental and livelihood risks for farmers.

The paper also recommended allowing US corn and by-products such as Distiller’s Dried Grains with Solubles (DDGS) for ethanol blending and export processing, while maintaining restrictions on GM materials within India’s domestic food supply.

The paper also suggested a “dual-track” approach. In the short term, India could selectively reduce high tariffs on non-sensitive imports, while negotiating non-tariff safeguards on vulnerable segments such as poultry.

Although the paper was removed from NITI Aayog’s website last week, no formal confirmation of its withdrawal was available until now.