mmdeinternational.com- Why does India not import corn from the US?

Millet Maize DDGS Ethanol Int- India has been under pressure from U.S. officials to open up its corn market, but there are several key reasons why imports of U.S. corn into India remain minimal. In 2024-25, India imported about 0.97 million tonnes of maize (corn) — mostly from Myanmar (0.53 mt) and Ukraine (0.39 mt). Imports from the U.S. amounted to just about 1,100 tonnes.

Two major impediments block larger U.S. corn exports to India:

  1. Tariff structure
    • India allows up to 0.5 million tonnes of corn imports annually at a duty rate of 15%.
    • Any volumes above that threshold attract a 50% tariff, making large‐scale imports much less economically viable. 
  2. Restrictions on genetically modified (GM) crops
    • India currently does not permit the import of genetically modified corn. 
    • Because a large majority of U.S. corn acreage is planted with GM varieties (for traits like herbicide tolerance or insect resistance), this effectively rules out most U.S. corn for the Indian feed or food market. 

These restrictions persist despite growing demand in India. As incomes rise and consumption patterns shift toward more animal products (meat, eggs, dairy), feed demand (including corn) is projected to rise sharply. One projection from the U.S. Department of Agriculture suggests that under a “rapid” income growth scenario, India's corn consumption could jump from about 34.7 mt in 2022-23 to 98 mt in 2040 and 200.2 mt in 2050. Even under a more moderate growth path, demand will increase significantly. 

There are political factors as well: ahead of elections (for example, in states like Bihar, which is among India’s top maize‐producing states), there is little incentive for policy changes that might hurt domestic producers. Allowing cheaper imports or GM varieties could face opposition from farmers and stakeholders worried about competition and safety. From an economic standpoint, U.S. producers can grow corn much more cheaply. For example, in July (of the cited year), U.S. farm‐gate prices for corn were about US$4.29 per bushel (roughly Rs 15/kg), while wholesale prices in India were around Rs 22-23/kg, with the government’s Minimum Support Price (MSP) for 2025-26 set at Rs 24/kg.