Context: The US Commerce Secretary has questioned India for not opening up its market to American Corn. Differences over agricultural trade is at the heart of the trade dispute between India and the US.
Relevance of the Topic: Prelims: India-US Trade dispute: Agriculture Sector

Why does India not import corn from the US?
There are three reasons why India does not buy American Corn:
- Self-sufficiency in Corn production: India produces around 34-36 million tonnes of corn annually, making it the world’s fifth-largest producer of corn.
- Concerns over GM Corn: The US grows more than 90% of its corn from GM seeds. However, India does not permit the cultivation or import of genetically modified food or feed (with the exception of GM cotton).
- Protect farmers’ interest:
- India needs to protect its fragile agricultural sector that employs 500 million people against imports from countries that heavily subsidise their agriculture. Allowing cheaper GM imports would undercut Indian farmers.
- Smallholders (backbone of India’s agricultural economy) fear that allowing GM corn would open the gates to multinational corporations controlling seed markets. Dependence on patented seed technology could erode centuries-old practices like seed saving, while also raising questions of consumer safety and environmental impact.
Reasons the US is exploring alternate markets:
- China has been a major buyer of US corn, taking nearly a third of America’s exports. After the recent US-China trade war, China has begun to buy corn and soyabeans from Brazil, throwing the US agriculture sector into a crisis.
- With India’s rising corn consumption (particularly for ethanol-blended petrol programme), the US sees an enormous opportunity to export corn to India.
Increased demand for corn in India:
- Traditionally, corn is consumed into poultry feed, starch, and processed foods.
- In recent years, a growing share has been diverted toward ethanol production. In the latest cycle, India used 3.5 million tonnes of corn to produce around 1.35 billion litres of ethanol.
- With the government pushing for 20% ethanol blending in petrol by 2025-26, annual corn demand for biofuel alone could rise to 6-7 million tonnes.
- In 2024-25, India imported 0.97 million tonnes of corn (most of which came from Myanmar and Ukraine which export non-GM corn that meets Indian standards). The imports from the US were miniscule (just 1100 tonnes). Thus, there is some scope for corn imports from the US for use in producing ethanol.
However, importing GM corn even for ethanol production has been firmly rejected, with sugar mills and farmer unions warning it could marginalise sugarcane and disrupt the ethanol-blended petrol programme.
Also Read: US’s Tariffs: Nature, Impacts, and Lessons for India
The dispute reflects not just trade imbalances but a deeper clash over farming practices, food security, and agricultural sovereignty.











