Following the commencement of the Trump administration 2.0, Washington has launched multiple tariff reform initiatives. In its most recent move, the United States government is pursuing reduced import tariffs on maize (corn), with particular emphasis on genetically modified (GM) varieties. As the world’s leading maize exporter, America seeks to deepen its penetration into India’s maize market.
India maintains strict regulations on GM maize, prohibiting its use for food and feed purposes while allowing only restricted industrial applications, primarily for ethanol blending programs.
According to the media report, the Indian government has mounted resistance to the US tariff reduction proposal, arguing that lowering maize import duties would impact domestic maize production. India’s current trade policy imposes a 15% tariff on maize imports up to 500,000 metric tons annually. Key government departments—including the Ministry of Agriculture, Animal Husbandry, and Fisheries—have expressed concerns that reduced import duties would negatively impact millions of local maize farmers who currently benefit from prices above minimum support levels due to increased demand. Officials warn that cheaper imports could render domestic farming economically unviable.
Trade analysts present a contrasting viewpoint, suggesting that maize import tariff reduction represents a minimal concern given India’s previous zero-duty imports from Ukraine and Myanmar. These experts argue that imports would help stabilize India’s maize supply amid surging demand from fuel blending programmes and other industrial sectors.
Dr. C.K. Jain, President, Grain Ethanol Manufacturers Association (GEMA), presents a contrary view. He said, “India must not allow GM corn imports, as it would be a direct blow to the livelihoods of millions of our marginal farmers and a major setback to our Atmanirbhar Bharat goals. Agriculture is the backbone of Bharat, with more than 65% of India’s population dependent on agriculture. Any policy decision that discourages domestic crop development, like allowing GM corn imports, which risks destabilising rural incomes and food security.
He added that the grain-based ethanol sector in the last two years has been a ray of hope for the farmers. “Just two years ago, maize was trading around ₹14–₹15/kg. Today, average prices have risen to ₹20–₹22/kg, signalling real income gains for farmers. This momentum should be protected, not disrupted by cheap, imported corn”, he said.
Giving a solution to resolve the current standoff, Jain said that, “Instead of allowing GM corn imports, the focus must remain on supporting hybrid seed development domestically and incentivising maize cultivation through price assurance to the farmer”.
