India resists US pressure to open corn trade, citing farmer welfare and food security risks

Not Popping: India’s Tough Stand on US Corn Imports

India&rsquo;s maize sector is facing a critical policy crossroad. With domestic production falling short of rising demand from feed, starch, and ethanol industries, pressure is mounting to ease import restrictions. The U.S., sitting on record maize surpluses, is pushing for market access, but India&rsquo;s high tariffs and ban on GM corn remain firm. At stake are farmer incomes, industrial input costs, and the balance between agricultural reform and self-reliance.
<h2 data-start="694" data-end="759">India&rsquo;s Maize Landscape: Production, Demand, and Pressures</h2>
India produced 35.67 million metric tonnes (MMT) of maize in 2023&ndash;24, down from 38.09 MMT the previous year, mainly due to erratic monsoons and stagnant productivity. Domestic consumption stood at 29.6 MMT, with demand driven by:
<ul data-start="1004" data-end="1139">
<li style="font-family: georgia, palatino, serif; font-size: 12pt;" data-start="1004" data-end="1043">
60&ndash;62%: Poultry and cattle feed
</li>
<li style="font-family: georgia, palatino, serif; font-size: 12pt;" data-start="1044" data-end="1072">
14%: Starch industry
</li>
<li style="font-family: georgia, palatino, serif; font-size: 12pt;" data-start="1073" data-end="1100">
7%: Food processing
</li>
<li style="font-family: georgia, palatino, serif; font-size: 12pt;" data-start="1101" data-end="1139">
~5 MMT: Direct human consumption
</li>
</ul>
Despite large-scale production, India faces a growing demand-supply gap. By 2035&ndash;36, maize demand is projected to reach 60 MMT, and by 2047&ndash;48, up to 86 MMT. Expected domestic output, at 51 MMT and 80 MMT respectively, will leave a shortfall of 6 to 9 MMT.
<h3 data-start="1431" data-end="1465">Key Factors Behind the Gap</h3>
<ul data-start="1466" data-end="1744">
<li style="font-family: georgia, palatino, serif; font-size: 12pt;" data-start="1466" data-end="1517">
Rapid expansion of poultry and dairy feed needs
</li>
<li style="font-family: georgia, palatino, serif; font-size: 12pt;" data-start="1518" data-end="1571">
Government's ethanol blending program using maize
</li>
<li style="font-family: georgia, palatino, serif; font-size: 12pt;" data-start="1572" data-end="1638">
Low adoption of high-yield seed hybrids and farm mechanization
</li>
<li style="font-family: georgia, palatino, serif; font-size: 12pt;" data-start="1639" data-end="1694">
Inadequate plant health and post-harvest management
</li>
<li style="font-family: georgia, palatino, serif; font-size: 12pt;" data-start="1695" data-end="1744">
Weak rural storage and logistics infrastructure
</li>
</ul>
<h2 data-start="1751" data-end="1809">Zero-Tariff Imports: Industry Push vs. Farmer Risks</h2>
Amid high domestic prices, industry stakeholders, particularly from poultry and starch sectors, are calling for zero-tariff maize imports, especially from the U.S. But the proposal has raised major concerns:
<h3 data-start="2024" data-end="2048">Risks to Farmers</h3>
<ul data-start="2049" data-end="2327">
<li style="font-family: georgia, palatino, serif; font-size: 12pt;" data-start="2049" data-end="2119">
Domestic maize prices often exceed Minimum Support Price (MSP)
</li>
<li style="font-family: georgia, palatino, serif; font-size: 12pt;" data-start="2120" data-end="2189">
Influx of cheap, possibly GM corn could trigger price crashes
</li>
<li style="font-family: georgia, palatino, serif; font-size: 12pt;" data-start="2190" data-end="2262">
12 to 15 million maize farmers may find cultivation unprofitable
</li>
<li style="font-family: georgia, palatino, serif; font-size: 12pt;" data-start="2263" data-end="2327">
Political fallout in a sensitive rural economy could be severe
</li>
</ul>
<h3 data-start="2329" data-end="2356">Industry&rsquo;s Argument</h3>
<ul data-start="2357" data-end="2490">
<li style="font-family: georgia, palatino, serif; font-size: 12pt;" data-start="2357" data-end="2428">
Lower input costs would ease pressure on feed and starch industries
</li>
<li style="font-family: georgia, palatino, serif; font-size: 12pt;" data-start="2429" data-end="2490">
Could stabilize production expenses and benefit consumers
</li>
</ul>
Still, India&rsquo;s policymakers remain cautious. Prioritizing farmer income, biodiversity, and food security, the government continues to back the Atmanirbhar Bharat vision over short-term import relief.
<h2 data-start="2714" data-end="2753">Trade Tensions Intensify in 2025</h2>
In 2025, the U.S. imposed a 10 percent blanket tariff on imports and threatened a further 26 percent surcharge on trade-surplus nations like India. Although India negotiated a 90-day reprieve, pressure to relax agricultural import restrictions has escalated.
U.S. officials argue the disparity is unfair. India levies up to 50 percent on corn imports, while the U.S. charges zero duty. India counters that its policy is rooted in protecting food sovereignty and rural economic protection, not protectionism.
<h2 data-start="3298" data-end="3334">India&rsquo;s Expanding Corn Market</h2>
India&rsquo;s maize market is set to grow significantly, expected to touch 60.85 MMT by 2033. This growth is driven by:
<ul data-start="3455" data-end="3602">
<li style="font-family: georgia, palatino, serif; font-size: 12pt;" data-start="3455" data-end="3505">
Increased corn demand for ethanol blending
</li>
<li style="font-family: georgia, palatino, serif; font-size: 12pt;" data-start="3506" data-end="3544">
Rising consumption of corn oil
</li>
<li style="font-family: georgia, palatino, serif; font-size: 12pt;" data-start="3545" data-end="3602">
Expanding animal feed and starch processing sectors
</li>
</ul>
Despite this, India continues to emphasize domestic production to reduce external dependency and avoid global price volatility.
Meanwhile, the U.S. is forecast to produce a record 15.82 billion bushels of corn in 2025&ndash;26 and is aggressively seeking export markets like India to absorb its surplus.
<h2 data-start="3917" data-end="3958">Conclusion: A Kernel of Contention</h2>
Corn has become a symbol of a deeper conflict between free trade ambitions and agricultural self-reliance. While zero-tariff imports may offer cost relief to certain industries, they risk destabilizing the livelihoods of millions of Indian farmers.
Unless India bridges its structural production gaps, enhances rural infrastructure, and builds broader consensus on GM crop safety and price protection, maize will remain a sticking point in India&ndash;U.S. trade relations.

8 જુલાઈ, 2025 | 15:12 IST

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