Rama Krishna Sangem
India has finally readying to buy corn from the US. This is to satisfy President Donald Trump and getting an early trade deal with America so that we can escape from the wrath of 50 per cent tariffs on a range of goods and securing some escape from 100 per cent tariffs on pharmaceutical products, from October 1.
India could buy corn from the US to produce ethanol, besides making higher purchases of energy, as part of fresh offers to arrive at a trade deal. New Delhi has pressed for removal of the 25% penal tariffs imposed on India for purchasing Russian oil that the US says is helping to fund the Ukraine war.
Regulatory Ban on GM Imports: India prohibits the import of genetically modified (GM) corn. With 94% of US corn in 2024 being GM and India allowing GM cultivation only for cotton, importing US GM corn is legally barred. India’s tariff structure discourages corn imports: a 0.5 million tonne quota faces 15% duty, while excess imports incur 50% duty, making US corn commercially unviable.
Indian officials warn that cheap imports could threaten the maize-for-ethanol ecosystem and new farmers, prompting the government to safeguard farmer incomes amid rising domestic production and acreage. The US corn price is just about 70% of Indian maize without taking into account shipping, marketing costs and business margins. This would be equivalent to dumping, harming Indian maize farmers.
Importing corn for ethanol production undermines India’s goal of import substitution, which aims to use domestic produce and save foreign exchange rather than create dependency on imports. In fact, corn has become a thorny issue in clinching a trade deal between India and the US. India is resisting American pressure to take huge quantity of US corn imports.
India 5th largest producer of maize
India’s Global Standing: India is the 5th largest maize producer but only the 14th largest exporter (UN-COMTRADE 2022). With yields under 4 four tonnes per hectare (vs. global 6 t/ha), it remains largely self-sufficient.
India has recently started importing maize mainly from Myanmar and Ukraine.Major Producers: The top producing countries are the United States, China, and Brazil. The major maize-growing states in India are Karnataka, Madhya Pradesh, and Bihar. Uses: Maize is highly valued globally for its multifarious uses as food, feed, fodder, and raw material for industries. Apart from food and feed, 14–15% of India’s maize is used for industrial purposes.
It is a critical ingredient in starch, oil, protein, alcoholic beverages, food sweeteners, pharmaceuticals, cosmetics, textiles, films, gum, packaging, and paper industries.Indian Agricultural Research Institute (IARI) has developed India’s first “waxy” maize hybrid, high in amylopectin starch, making it ideal for ethanol production.
Even if US corn is allowed, India will use it only for producing ethanol that can be blended in petrol. But not for using it for food products purpose.
