Published on: July 4, 2025

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.