Millet Maize DDGS Ethanol Int- Trade negotiations between India and the United States have hit a new hurdle, with maize or corn emerging as a point of friction. America’s Commerce Secretary Howard Lutnick took a sarcastic swipe at India’s import policy and asked why a country of 1.4 billion people cannot buy even a single bushel of corn from the United States.
His comments highlighted Washington’s growing unease over India’s refusal to open its market to American maize. Data shows India imported just 1,100 tonnes of corn from the United States in 2024-25. This amount is negligible compared to the country’s total maize imports of 0.97 million tonnes. India has preferred to source the grain from Myanmar and Ukraine.
The absence of American corn in India’s basket has cast a shadow over wider trade negotiations. As talks began in New Delhi a day before yesterday, corn was placed firmly on the table. The issue is no longer about food alone. It now carries the weight of diplomacy.
Why Does India Avoid American Corn?
There are two primary barriers stand in the way of US exports. The first is tariffs. India allows up to 500,000 tonnes of corn imports at a 15% duty. Any volume above that attracts a steep 50% duty. The second is regulation. India has placed a ban on genetically modified (GM) corn. This ban blocks the entry of American corn, since nearly 94% of the US crop is GM-based.
Why is America So Desperate To Export Its Corn?
The United States is pressing harder than usual because of shrinking demand from China. Beijing has slashed corn imports from Washington, dropping purchases from $5.2 billion in 2022 to just $331 million in 2024.Overall US corn exports have also fallen sharply, down from $18.57 billion in 2022 to $13.7 billion in 2024. With global demand shifting, India is seen as a key untapped market.The United States now seeks new markets. With its booming demand for poultry feed, dairy, and ethanol production, is seen as an obvious destination. This urgency has turned into pressure. Washington wants New Delhi to open its gates.
Why Is India Resisting?
Domestic economics tells the story. Corn in India sells at Rs 22 to Rs 23 per kilogram. The government has fixed the minimum support price at Rs 24. Corn in the United States is produced at less than Rs 15 per kilogram. If imports are allowed at cheaper rates, Indian farmers will face losses.Bihar, one of the largest corn-producing states, would be hit the hardest. Elections are coming up in the state. The politics of the crop has become inseparable from the economics.At one stage, India had considered allowing imports of American corn for ethanol production only. That proposal was quickly shelved after political pushback. The government has since drawn a firm line that it will neither lift restrictions on GM crops nor ease tariffs on corn imports.The talks between India and the United States are ongoing, but officials admit that progress is unlikely in the immediate term. With elections approaching, trade negotiators expect little movement on agricultural imports.The United States may continue to apply pressure, but there is little chance of movement until elections are over in India. Until then, corn will remain more than just grain. It will stand as a symbol of larger power play between New Delhi and Washington.
