INDIA-US TRADE TALKS: FOUR RED LINES IN FOCUS
INDIA-US TRADE TALKS: FOUR RED LINES IN FOCUS
NEWS – India-US trade negotiations face key hurdles over four farm products: corn (maize), ethanol, soybean, and dairy.
HIGHLIGHTS
- India considers these sectors non-negotiable to protect its farmers; Finance Minister Nirmala Sitharaman has reaffirmed this position.
- GM crops remain controversial due to health, environmental, and seed sovereignty concerns.
- Bt cotton has been India’s only commercially approved GM crop since 2002, leading to a remarkable 192% increase in cotton production by 2013-14.
- Despite this “gene revolution” success, Bt cotton remains highly controversial.
- Concerns include increased sucking and secondary pests, emergence of pest resistance, and potential environmental and health implications like toxicity and allergenicity.
- Farmers also face greater risks of monopoly in the seed business.
KNOW THIS
| · Corn: US is the top global producer/exporter (377.6 mt, 2024-25), with 94% GM varieties. India’s output is 42.3 mt. India levies 15-50% import duty on maize, but prohibits GM maize and its import. A proposal exists to allow GM maize imports solely for fuel ethanol production, as maize fuels 46% of India’s current ethanol blending.
· Ethanol: US is the largest ethanol producer/exporter. India was its third-largest market ($441.3 million) in 2024. India currently restricts ethanol imports to “actual user” licenses for non-fuel industrial uses. With projected 2025 consumption at 11,350 million litres (mostly fuel), the US seeks market access. · Soybean: US (and Brazil) are major GM soybean producers/exporters with higher yields than India. India permits GM soybean oil imports, but prohibits whole GM soybeans and de-oiled cake (DOC) due to GM protein content. · Dairy: India’s high duties (30-60% on cheese, butter, milk powder) make dairy imports unviable, even from low-cost producers like New Zealand.
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