Government think tank Niti Aayog's member Ramesh Chand said on Wednesday that "India would’ve probably agreed to import of soybean and corn from the US in the mini-deal, if it is not genetically modified (GM)." He was speaking at an event organised by the Indian Chamber of Commerce in New Delhi.
Chand said that he was "not personally against GM" because he felt "it doesn’t do any harm" but added that a "large section of farmers is against it."
GM crops refer to plants that have been genetically altered to make them resistant to insects or disease or increase their nutritional value.
Chand stated that US is India’s biggest market for agriculture. "Nearly 10 percent of our agri exports, valued $5.5 billion, is directed towards US. Shrimp, basmati rice, and fish are key products exported by India to the US…In the mini-deal, we need to ensure that it’s protected," he said.
GM crops are a sensitive issue for Indian farmers. When India first approved Bt cotton for cultivation in 2002, farmers, especially in producer states like Karnataka, protested.
Indian farmers are wary of GM crops due to their potential implications on public health and their incomes. “Experiences with Bt cotton (India’s only widely approved GM crop) are mixed — some farmers gained, others faced issues like rising costs and pest resistance,” Divya Kumar Gulati, chairman at Compound Feed Manufacturers Association (CLFMA), said.
“There are worries that GM seeds (often patented) could increase dependency on large agribusinesses. GM seeds are often non-reusable, meaning farmers have to buy new seeds every season, unlike traditional practices. Small and marginal farmers may struggle to afford these seeds or bear losses in case of crop failure due to unexpected conditions,” Gulati said.
Chand emphasised that the best way to push against imports is to improve productivity. "If you increase productivity, then you don't need to import. We’ve increased the productivity of rice and wheat over the years, and we’re now net exporters of these crops."
"We were net exporters of cotton too, but after 2015-16, the technological progress in cotton stopped, which pushed us to be importers. It’s only through increase in productivity, we can resist imports," Chand added.
Meanwhile, on the withdrawal of the contentious Niti Aayog working paper--which proposed the import of GM soyabean seeds from the US--Chand told Moneycontrol that the paper was also advisory in nature, and it's recommendations were taken "out of proportions".
"Niti Aayog is unlikely to come out with a similar paper anytime soon," Chand confirmed.
The paper, titled, 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.
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 had argued.
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