After China’s snub, US corn push hits India’s red lines: Why America's GM corn finds no takers | Explained

Representational Image (Reuters)

The latest salvo from Washington over trade is aimed squarely at Indian agriculture. After earlier remarks predicting that New Delhi would “apologise” and return to the table to make a deal with Donald Trump, US Commerce Secretary Howard Lutnick has now targeted Indian restrictions on American corn. His comments highlight a long-running flashpoint in India-US trade talks: New Delhi’s refusal to import genetically modified (GM) corn to protect its small farmers and maintain food safety standards.

Lutnick’s fresh attack on India

In an interview to Axios, Lutnick said, “India brags that they have 1.4 billion people. Why won’t 1.4 billion people buy one bushel of US corn? Doesn’t that rub you the wrong way that they sell everything to us, and they won’t buy our corn. They put tariffs on everything.”

When asked on Saturday whether the US was mismanaging “very valuable relationships” with “important allies” like India, Canada and Brazil through tariffs, Lutnick told Axios, “The relationship is one way, they sell to us and take advantage of us. They block us from their economy, and they sell to us while we are wide open for them to come in (and) take advantage.”

“The president says, ‘fair and reciprocal trade’,” he added.

Why India says no to US corn

Lutnick’s remarks come as American officials push for market access for US corn in India. But New Delhi has consistently refused to allow import of genetically modified (GM) varieties, calling it a “matter of principle.” India is self-sufficient in corn production and ranks as the fifth-largest producer globally. Most of its corn is grown by small farmers who need protection, whereas US corn comes largely from corporate farms.

As much as 94 per cent of the total area planted to corn in the US last year was under GM varieties, according to the Indian Express. India does not allow imports of GM grains, pulses, oilseeds, fruits or similar food or feed products. Even proposals to allow GM corn only for fuel ethanol production have been rejected. Farmers have warned that allowing GM corn even as animal feed would give multinational corporations a backdoor into Indian agriculture, undermining seed sovereignty and pushing smallholders toward expensive patented seeds.

Sugar mills are also wary of GM corn for ethanol. As the Indian Express notes, imported GM maize could further marginalise sugarcane in the ethanol-blended petrol programme.

The China angle behind Washington’s push

Washington’s push for corn exports to India also has a China angle. Beijing has sharply reduced its purchases of US corn since the onset of its trade war with Washington. Reuters data shows that a record 31 per cent of US corn exports went to China in 2020–21, but that fell to 18 per cent by 2022–23 and below six per cent in the recently concluded 2023–24 season.

The US therefore sees India as a potentially vast alternative market, with domestic consumption projected to rise from 34.7 million tonnes in 2022–23 to 98 million tonnes in 2040 and 200.2 million tonnes in 2050.

For now, India has stood firm on its policy, resisting American pressure to open its market to GM corn. Whether Lutnick’s comments alter that position remains to be seen, but New Delhi’s commitment to protecting small farmers and maintaining food safety standards makes any sudden shift unlikely.