New Delhi: Commerce negotiations between India and america have hit a brand new hurdle, with maize or corn rising as some extent of friction. America’s Commerce Secretary Howard Lutnick took a sarcastic swipe at India’s import coverage and requested why a rustic of 1.4 billion folks can’t purchase even a single bushel of corn from america.
His feedback highlighted Washington’s rising unease over India’s refusal to open its market to American maize.
Information reveals India imported simply 1,100 tonnes of corn from america in 2024-25. This quantity is negligible in comparison with the nation’s whole maize imports of 0.97 million tonnes. India has most well-liked to supply the grain from Myanmar and Ukraine.
The absence of American corn in India’s basket has solid a shadow over wider commerce negotiations. As talks started in New Delhi a day earlier than yesterday, corn was positioned firmly on the desk. The difficulty is now not about meals alone. It now carries the load of diplomacy.
Why Does India Keep away from American Corn?
There are two major boundaries stand in the best way of US exports. The primary is tariffs. India permits as much as 500,000 tonnes of corn imports at a 15% obligation. Any quantity above that draws a steep 50% obligation. The second is regulation. India has positioned a ban on genetically modified (GM) corn. This ban blocks the entry of American corn, since practically 94% of the US crop is GM-based.
Why is America So Determined To Export Its Corn?
The US is urgent more durable than common due to shrinking demand from China. Beijing has slashed corn imports from Washington, dropping purchases from $5.2 billion in 2022 to only $331 million in 2024.
Total US corn exports have additionally fallen sharply, down from $18.57 billion in 2022 to $13.7 billion in 2024. With international demand shifting, India is seen as a key untapped market.
The US now seeks new markets. With its booming demand for poultry feed, dairy, and ethanol manufacturing, is seen as an apparent vacation spot. This urgency has was stress. Washington desires New Delhi to open its gates.
Why Is India Resisting?
Home economics tells the story. Corn in India sells at Rs 22 to Rs 23 per kilogram. The federal government has mounted the minimal help value at Rs 24. Corn in america is produced at lower than Rs 15 per kilogram. If imports are allowed at cheaper charges, Indian farmers will face losses.
Bihar, one of many largest corn-producing states, can be hit the toughest. Elections are developing within the state. The politics of the crop has turn out to be inseparable from the economics.
At one stage, India had thought of permitting imports of American corn for ethanol manufacturing solely. That proposal was shortly shelved after political pushback. The federal government has since drawn a agency line that it’ll neither raise restrictions on GM crops nor ease tariffs on corn imports.
The talks between India and america are ongoing, however officers admit that progress is unlikely within the rapid time period. With elections approaching, commerce negotiators anticipate little motion on agricultural imports.
The US could proceed to use stress, however there may be little likelihood of motion till elections are over in India. Till then, corn will stay extra than simply grain. It should stand as a logo of bigger energy play between New Delhi and Washington.