India is not inclined to give in to the US’ demand for market access for its soyabean and corn as the country does not allow import of the genetically modified (GM) variety and would not want to compromise on a “matter of principle”, sources said.
“India is not able to allow import of soyabean and corn from the US as they grow the GM variety. India does not allow such imports. It is a matter of principle. We can’t compromise on this,” a highly placed source tracking the matter told businessline.
The US has been pushing India to open up its agriculture sector in the bilateral trade agreement (BTA) being negotiated between the two countries. It particularly wants India to buy its soyameal and corn, which India has so far avoided because it is mostly of the GM variety.
In 2024, the US was the highest exporter of corn and second-highest of soyameal, in the world. China and Mexico were its largest buyers but with tariff confrontations on with the two countries and Beijing also looking at Brazil for supplies, the US wants to diversify its market and is interested in India.
India had been trying to work out an interim trade deal with the US by August 1 to avoid the 26 per cent reciprocal tariffs that may be imposed on its exports that day, but it now seems increasingly difficult, another source said.
The reciprocal tariffs announced by US President Donald Trump on August 2 on most trade partners were put off till July 9 and further postponed till August 1 to give time for bilateral deals to be worked out.
No GM imports
Earlier this year, US Commerce Secretary Howard Lutnick openly criticised India’s agriculture import policies and asked why a country of 1.4 billion could not buy a single bushel of corn from the US.
“The problem is that over 90 per cent of corn and soyabean grown in the US is GM. As there is no way to demarcate the GM from the non-GM, the US government will not certify it. Therefore, it is just not possible for India to import corn and soyabean as long as it maintains its policy on GM imports,” another source said.
Imports of GM grains, pulses, oilseeds, fruits, and similar food/feed products is not allowed in India. Since 2021, over 20 such product categories must be accompanied by non-GMO certification with a 1 per cent tolerance level for accidental presence.
Because of high cross-contamination risks in India, import of GM products could lead to traces of GM in agriculture exports from the country, according to trade research body GTRI. This may, in turn, lead to rejections in the EU and some other markets.
Published on July 26, 2025
