'Won't Buy Our Corn': Why US Wants To Sell More Maize, What's Behind India's Refrain
India is the fifth-largest producer globally and is self-sufficient as far as corn is concerned.
Commerce Secretary Howard Lutnick took a hit at India's most protected sector, agriculture, amid US officials' demand for greater access to Indian markets for American corn.
India, however, does not allow the import of genetically modified corn, and charges a steep 15% duty on maize imports of up to 0.5 mt annually, with quantities beyond that attracting a higher 50% rate.
"India brags that they have 1.4 billion people. Why won't 1.4 billion people buy one bushel of US corn? Doesn't that rub you the wrong way that they sell everything to us and they won't buy our corn. They put tariffs on everything," Lutnick said.
Lutnick made the comments during an interview on Sept. 13 when he was asked whether the US is mismanaging "very valuable relationships" with "important allies" like India, Canada and Brazil with the tariffs imposed on these countries.
The central government refuses to purchase GM corn to prevent it becoming a part of the food chain. The NITI Aayog in July withdrew a working paper that opened up markets for the import of genetically modified crops such as corn and soybean from the US, reiterating its stance against transgenic crops.
Up until 2024, India was a corn surplus country — with its corn exports exceeding an amount of Rs 36.2 lakh crore between 2022 and 2023, as per Ministry of Commerce and Industry trade data. Even now India is the fifth-largest producer globally and is self-sufficient as far as corn is concerned.
Why Sudden Corn Push? China May Be The Answer
China has cut down on its import of US corn and soybean since the advent of the trade conflict with Washington. As per Reuters data, China's purchase of US Corn slumped as much as 6% in the 2023–24 season compared to 31% in the 2020–21 season.
This sharp fall made corn cheaper for other Asian peers to buy. Therefore, Washington's shot at India may have ricocheted off of China. The US eyes Indian markets as a potential alternative to China and has been pushing for greater access to its agricultural market ever since trade talks began between the two countries.
