India Eyes US Corn for Ethanol Production
India is in negotiations with the United States to import corn to bolster its ethanol production efforts. This move is part of broader talks between the two countries seeking to deepen trade relations and make mutual concessions.
Tariff Question Looms
New Delhi is also pushing for the removal of 25% punitive tariffs that the US imposed on Indian goods. These tariffs were introduced by Washington citing India’s purchase of Russian oil, which the US claims indirectly supports the war in Ukraine.
Strategic Motivations
India’s ethanol blending goal aims for a 20 percent mix of ethanol in petrol by 2025–26. With sugarcane supplies under pressure, the country is exploring alternate feedstocks, making corn imports more relevant. India has previously used surplus rice for ethanol to manage stockpiles.
Additionally, the US seeks to expand market access in agriculture and energy under any deal.
Challenges & Concerns
A key hurdle remains genetic modification (GM) norms, as large portions of US corn are genetically engineered. India must assess health, environmental, and regulatory implications before large-scale imports. Domestic corn producers and the poultry and animal feed sectors may also be affected by shifts in supply and pricing.
Observers note that any agreement will need to balance India’s strategic energy goals, farmers’ interests, and trade diplomacy.
