India-US Corn Conundrum | 24 Sep 2025

Source: TH

Why in News?

The US has expressed interest in exporting corn to India, but India remains cautious due to GM crop concerns, strong domestic production, and political considerations.

What Prevents India from Importing Corn from the United States?

• 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.
• High Tariff Barriers: 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.
• Protection of Domestic Farmers: 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.
• Risk of Dumping: 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.
• Sovereign Policy on Ethanol Blending: 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.
  • 20% ethanol blending in petrol could save up to USD 10 billion in annual forex outgo through import substitution.

What are Key Facts Regarding Corn(Maize)?

• About: Corn (maize) is a highly versatile crop, known as the queen of cereals for its high genetic yield potential. 
  • Originating in Central America, it is a globally vital cereal for human consumption, animal feed, and forage.
• Climate & Temperature: Sensitive to frost (especially seedlings) requires a frost-free period with mean daily temperatures above 15°C but tolerates heat up to 45°C with sufficient water.
  • It is highly responsive to solar radiation. Adequate light penetration to upper leaves is essential for grain filling.
• Soil Requirements: Prefers well-aerated, well-drained soils. Performs poorly on heavy clay or sandy soils, and is vulnerable to waterlogging.
• Water Requirements: It is a water efficient crop, needing 500–800 mm of water to achieve maximum grain yield.
• India’s Global Standing: India is the 5th largest maize producer (FAO, 2023)  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.

What are the Key WTO Provisions Enabling Import Restrictions by Countries?

Conclusion

India’s restrictions on U.S. corn imports stem from GM crop bans, tariff barriers, protection of farmers, and ethanol self-reliance goals. While India is the world’s 5th largest maize producer, low yields and rising demand drive occasional imports. Balancing domestic protection and global trade pressures remains a key policy challenge.