India Weighs GM Animal-Feed Imports from US Ahead of Key Trade Deadline

Mumbai, 4 July 2025: In a significant policy development, India is evaluating a proposal to allow imports of genetically modified (GM) animal-feed products from the United States. The move, tied to a broader trade agreement under negotiation, may mark a shift in India’s longstanding resistance to GM crop imports as both nations race to finalise terms before 9 July, when new US tariffs are set to take effect.

Strategic Shift May Open Doors to Processed GM Feed Imports

As part of the proposed trade framework, India is expected to allow imports of processed GM animal-feed items, including soybean meal and distillers dried grains with solubles (DDGS) — a byproduct of corn-based ethanol production. These concessions aim to balance trade dynamics and secure favourable access to US markets amid intensifying bilateral talks.

Balancing Global Trade and Domestic Farm Sensitivities

India has long enforced tight curbs on GM food crop imports, citing risks to farm incomes, rural livelihoods, and food security. While GM cotton is widely cultivated domestically and accounts for over 90% of India’s cotton output, food crops such as GM mustard and GM brinjal have faced significant regulatory and legal pushback. The concerns stem from fears that foreign GM produce may displace local agricultural practices and farmer income.

Despite this resistance, India continues to import large quantities of edible oils extracted from GM crops like soy and canola, which account for nearly 60% of domestic consumption, showing a nuanced acceptance of GM-derived products in specific sectors.

High-Level Trade Talks Enter Final Phase Ahead of Tariff Deadline

Recent days have seen a surge in negotiations between senior Indian and US officials. US Treasury Secretary Scott Bessent stated that the two countries are “very close” to sealing the deal. If concluded, the agreement could serve as a critical milestone in India–US trade relations, potentially easing tariff tensions and setting the stage for wider collaboration in the agri-tech and processed food sectors.

No Official Word Yet, But Deal Likely Before 9 July

India’s Ministry of Commerce and Industry has not issued a formal statement on the talks. However, sources close to the matter suggest that an announcement is expected before the 9 July tariff deadline, underscoring the urgency of finalising the pact in the face of looming trade repercussions.

This prospective policy shift—while limited to animal feed—could signal a broader openness to processed GM imports in the future, setting a precedent for trade-linked agricultural reforms.

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations