Why India Isn't Buying Corn From the US, Even After Trump's Tariff Pressure
In recent weeks, US Commerce Secretary Howard Lutnick has repeatedly criticized India for not importing American corn, emphasizing the country's 1.4 billion population and questioning why it won't buy "even one bushel" of US corn. This rhetoric comes amid escalating trade tensions, with the Trump administration imposing a 50% tariff on Indian goods, including a 25% levy on India's purchases of Russian oil. Despite this pressure, India remains steadfast in its refusal to import US corn, driven by a combination of domestic priorities, regulatory restrictions, and economic considerations. Here's a closer look at why India is resisting US corn imports and the broader implications for bilateral trade.
India's Corn Market: A Snapshot
India is the world’s sixth-largest producer of maize, with an annual output of approximately 35–38 million tonnes, primarily from states like Uttar Pradesh, Andhra Pradesh, Maharashtra, and Karnataka. About 50–60% of this crop is used for animal feed, 15–20% for ethanol production, 10–15% for food consumption, and the rest for industrial purposes. While India has historically been self-sufficient in corn, rising demand for ethanol blending and poultry feed has turned it into a net importer, with imports jumping from 5,000 tonnes in 2023 to nearly 10 lakh tonnes in 2024.
However, India sources its corn imports primarily from Myanmar (1–2 lakh tonnes in 2024) and Ukraine (4 lakh tonnes from January to August 2025), both duty-free, with smaller amounts from Thailand and Argentina. Notably, US corn imports were negligible, at just 1,100 tonnes in 2024–25.
Why India Isn't Buying US Corn
Several factors explain India's reluctance to import corn from the United States, despite tariff pressures from the Trump administration:
Genetically Modified (GM) Restrictions
Around 90% of US corn is genetically modified, which is strictly prohibited in India for both human and animal consumption. Indian regulations aim to prevent GM crops from entering the food chain, including through soil or animal feed. This stance led to the shelving of a NITI Aayog proposal to grow GM corn for ethanol production. Without harmonization of food safety standards, large-scale US corn imports are unfeasible.Self-Sufficiency and Farmer Protection
India’s government prioritizes protecting its domestic farmers, particularly smallholders who are politically influential. Importing cheaper US corn could depress local prices, harming farmers in key agricultural states. High tariffs on foreign corn (15% for up to 0.5 million tonnes annually, 50% beyond that) are designed to shield domestic producers, making US corn less competitive.Cost and Logistics Advantages of Alternatives
India imports corn from Myanmar and Ukraine duty-free, and these countries offer competitive prices and lower shipping costs compared to the US. Additional suppliers like Brazil and Argentina provide non-GM varieties that align with Indian regulations, further reducing the appeal of US corn.Resistance to Tariff Pressure
Despite the Trump administration’s 50% tariffs on Indian goods, India has not bowed to pressure to increase US corn imports. New Delhi views protecting its agricultural sector as a strategic priority and has labeled US tariffs as “unfair, unjustified, and unreasonable.” India’s focus on national interest, including its energy procurement from Russia, has further complicated trade negotiations.
US Perspective and Trade Tensions
US Commerce Secretary Howard Lutnick has framed India’s refusal to import corn as emblematic of a “one-way” trade relationship, arguing that India benefits from access to the US market while restricting American goods. He has echoed former President Donald Trump’s call for “fair and reciprocal trade,” warning that India could face a “tough time” doing business with the US if it doesn’t lower tariffs. The US, the world’s largest corn producer and exporter (projected to produce 427.1 million tonnes and export 75 million tonnes in 2025–26), sees India’s growing demand as a potential market, especially as exports to China have plummeted from $5.21 billion in 2022 to $331 million in 2024.
Lutnick’s comments, including his assertion that India “brags” about its population but won’t buy US corn, have sparked debate. Critics, including Indian analysts, argue that his claim that India bought no US corn is factually incorrect, as 1,100 tonnes were imported in 2024–25. They also liken the US push for corn exports to asking Saudi Arabia to import oil, given India’s substantial domestic production.
Broader Implications
The corn dispute highlights deeper tensions in India-US trade relations. The US imposition of tariffs, including a 25% levy on India’s Russian oil purchases, has strained ties, with India defending its energy procurement as driven by national interest. The Trump administration’s aggressive tariff strategy aims to correct perceived trade imbalances, but India’s resistance underscores its commitment to self-reliance and regulatory sovereignty.
For US farmers, India’s 1.4 billion-strong market remains largely inaccessible, while Indian consumers benefit from stable prices but miss out on potentially cheaper US corn. Globally, India’s preference for non-GM suppliers like Myanmar, Ukraine, and South American countries strengthens their market position.
Looking Ahead
The ongoing trade tussle shows no immediate signs of resolution. India’s restrictive GM policies and focus on protecting domestic farmers are unlikely to shift under external pressure, while the US continues to push for market access through tariffs and rhetoric. Experts suggest that fair competition, rather than coercive tactics, would be more effective in opening India’s market. For now, India’s corn imports will likely continue to flow from duty-free, non-GM sources, leaving the US on the sidelines of this growing market.
For further insights, refer to coverage from News18 and The Indian Express.
