India-US trade deal: India may allow imports of gene-modified farm products amid intense negotiations

(Bloomberg) — India may allow imports of some processed, genetically modified US farm products as it seeks to strike a trade deal with Washington, a potential concession after New Delhi opposed inflows of GM corn and soybeans. 

Authorities may agree to inbound shipments of some products used in animal feeds, such as soybean meal and distillers dried grains with solubles, a byproduct of corn-based ethanol production, according to people familiar with the matter, who asked not be identified as the information isn’t public.

Indian and US officials have been engaged in intense negotiations over last few days to iron out differences in a bid to secure a deal before a July 9 deadline, when higher US tariffs are set to kick in. Earlier this week, Treasury Secretary Scott Bessent said the countries were “very close” to an agreement.

India’s Ministry of Commerce and Industry didn’t immediately respond to an email seeking comment for this story. 

The world’s most populous country is opposed to imports of GM corn and soybeans, and does not permit local farmers to grow them for food. With a vast agricultural sector, and farmers representing a key voting bloc, India retains a cautious stance toward shipments that could compete with local production, reflecting concerns over rural livelihoods and food security.

At present, the government doesn’t allow cultivation GM food crops, even though varieties can aid yields. The commercial release of GM mustard has been stalled due to a legal challenge in the country’s top court, and in 2010, the government rejected a GM variety of brinjal, or eggplant.

Still, India already meets about 60% of vegetable-oil demand through imports, including soy and canola oils from GM crops. The country is also the second-largest cotton grower, with more than 90% of that crop genetically modified.

India-US Trade Deal

India’s trade team has extended its stay in Washington to iron out differences as the two sides look to clinch a deal before a July 9 deadline when higher US tariffs are set to kick in, people familiar with the matter said.

The in-person negotiations were initially supposed to run through June 27 but were extended by a day, raising hopes of an interim trade deal, said the people, who asked not to be identified as the discussions are private.

US President Donald Trump last week said “a very big” deal with India was likely soon amid hardening stance of both the nations.

Both sides have dug in their heels over a few key issues including Washington’s demand that India open its market to genetically modified crops — an ask New Delhi has rejected, citing risks to its farmers.

India meanwhile is unwilling to sign a deal that doesn’t address both sectoral access and reciprocal tariffs on its exports, Bloomberg earlier reported.

An email sent to India’s commerce ministry outside business hours wasn’t immediately answered.

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