After disputes over Russian oil imports, corn has emerged as the latest flashpoint in India-US trade relations.
US commerce secretary Howard Lutnick has cautioned that India could face consequences in its access to the American market if it continues to block imports of US-grown corn. Speaking to Axios, Lutnick criticised the trade imbalance, claiming that India benefits from exporting to the US while keeping its own economy closed through high tariffs.
“India boasts of having 1.4 billion people. Why won’t they buy even one bushel of US corn? They sell everything to us while refusing our farm produce. It’s one-sided,” Lutnick remarked. He further added that President Donald Trump has made it clear: India must lower tariffs and treat US exporters the way Washington treats Indian businesses.
Corn has become a sticking point because most of the crop produced in the US is genetically modified (GM), while India maintains a strict ban on GM corn imports and cultivation, citing food safety concerns. A proposal by NITI Aayog to allow GM corn for ethanol production was also shelved earlier, reaffirming New Delhi’s cautious stance.
Meanwhile, US agricultural groups are facing mounting losses amid an ongoing trade dispute with China, which has sharply reduced orders for American crops. Data shows bankruptcies among small US farmers have reached a five-year high, prompting Washington to seek new markets such as India.
The tariff issue is further complicated by recent American measures against India. President Trump doubled tariffs on Indian imports to 50 per cent and imposed a 25 per cent duty on India’s Russian oil purchases, moves New Delhi has described as “unfair and unreasonable.”
Despite these tensions, Trump and Prime Minister Narendra Modi have both expressed optimism about reaching a trade agreement. US negotiators are set to arrive in New Delhi this week, but with corn now added to the list of disputes, talks are expected to be challenging.
