India has room to allow GM corn, soya from US strictly for ethanol and soybean oil production: Experts

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As India and US are likely to arrive at an interim trade agreement, New Delhi could consider allowing imports of genetically modified (GM) corn and soya strictly for production of ethanol and soybean oil, respectively, say experts.

India, until now, has remained firm on restricting entry of GM crops into the country’s food chain. However, with US President Donald Trump’s push for greater market access for farm products, India could look into allowing GM soya and corn for industrial purposes only—a likely loophole in the country’s policy of a strong ban on GM crops in the food chain.

India currently does not allow import or production of GM crops in the country.

“India is very keen to open up GMO. India may allow import of (GM) corn from the US for purpose of industrial ethanol. But we will have to run through various manoeuvres as we don’t have any import policy which is specific for an activity. We also need to have labelling norms which makes it clear that this (GM corn) is only for industrial consumption and not for human or animal consumption,” agricultural economist Deepak Pareek told Moneycontrol.

“India will also have to ensure that DDGS (Distillers’ Dried Grains with Solubles—a by-product of ethanol production) is exported out of the country as this is GM-based DDGS,” he added.

Similarly, if GM soya might be allowed, it would be for extracting soybean oil.

Moneycontrol on July 4 reported that India's chief negotiator and commerce ministry's special secretary Rajesh Agarwal returned from the US last night after the last leg of negotiations at the level of officials likely concluded around July 2 or 3.

While, India is hopeful of a mini trade deal before July 9, New Delhi has toughened its position on issues related to dairy and agriculture, especially GM crops, as negotiations in Washington continued for a week since the Indian team arrived there on June 27.

Allowing GM corn only for ethanol production, however, may work in India’s favour as the country is looking to increase the share of the said biofuel to spur a shift from fossil fuels, key to achieving its net-zero emissions target by 2070.

“If India falls short of maize due to diversion of ethanol, it may import maize. For that it is possible that the Govt may consider GM (corn imports from the US),” said Siraj Hussain, former agriculture secretary.

India, which has primarily been a maize exporter, became a net importer in September 2024 on account of higher demand from government’s ethanol blending programme.

With the country on track to achieve a 20 percent ethanol blending target in petrol, the deadline for which is October 2025, the government is now also working on a roadmap to further increase the blending share of the biofuel.