The US Commerce Secretary recently criticised India for restricting imports of American corn. Despite India’s large population of 1.4 billion, its imports from the US remain negligible. This has raised tensions amid growing US corn production and export ambitions. India’s corn import policies and restrictions on genetically modified organisms (GMOs) are central to this issue.
India’s Corn Import Patterns
India imported 0.97 million tonnes of corn in 2024-25. Most came from Myanmar (0.53 mt) and Ukraine (0.39 mt). US corn imports were minimal at 1,100 tonnes. India allows only 0.5 mt of corn imports at a 15% tariff. Imports beyond this face a 50% duty. India also bans all GMO corn imports, limiting access for US producers.
US Corn Production and Export Trends
The US is the world’s largest corn producer and exporter. In 2024-25, production reached 377.63 mt with exports of 71.70 mt. Projections for 2025-26 expect 427.1 mt produced and 75 mt exported. Corn is grown mainly in Midwestern states like Iowa and Illinois. It is used for animal feed, ethanol fuel, and industrial products.
Impact of China-US Trade War
China was the largest US corn buyer until recent trade tensions. In 2022, China imported $5.21 billion worth of US corn. By 2024, this dropped to $331 million due to escalating trade conflicts. This sharp decline has made the US seek alternative markets, increasing focus on India.
India’s Growing Corn Demand
India’s animal product consumption is rising due to population and income growth. This increases demand for feed grains like maize. The US Department of Agriculture projects India’s corn consumption rising from 34.7 mt in 2022-23 to 98 mt by 2040 under rapid income growth. Imports could reach 46 mt by 2040 in this scenario.
Genetically Modified Corn and Policy Barriers
About 94% of US corn acreage in 2024 was planted with GM varieties. These crops resist pests and tolerate herbicides. India currently bans GM corn imports and cultivation. A withdrawn NITI Aayog proposal suggested allowing GM maize imports solely for ethanol production, excluding food chains. Political and agricultural concerns make policy changes unlikely soon.
Price Competitiveness and Domestic Production
US corn is among the cheapest globally, priced at $4.29 per bushel in July 2025. This equals less than Rs 15 per kg. Indian wholesale corn prices stand at Rs 22-23 per kg. The minimum support price for the 2025-26 crop is Rs 24 per kg. Bihar, a major maize producer, faces elections, complicating import liberalisation.
Questions for UPSC:
- Point out the challenges and benefits of genetically modified crops in India’s agricultural sector with suitable examples.
- Critically analyse the impact of international trade policies on India’s domestic agriculture and food security.
- Estimate the role of tariff barriers in protecting domestic industries and their effects on global trade relations.
- Underline the factors influencing India’s import decisions in the context of rising domestic demand and geopolitical considerations.
