US Commerce Secretary Howard Lutnick has issued a strong warning that India risks losing access to the American market if it refuses to increase purchases of US-grown corn.
His remarks come just ahead of a fresh round of trade negotiations between the two countries. Lutnick argued that India’s high tariffs and restrictions are skewing the trade relationship. “If Indians have 1.4 billion people, why can’t they buy one bushel of US corn? They sell everything to us and won’t buy our corn,” he said in a press briefing, taking a direct swipe at New Delhi.
He further claimed that President Donald Trump has urged India to “bring down tariffs and treat us the way we treat you,” stressing that countries failing to follow this model will face tough consequences when accessing the world’s biggest consumer market.
India’s Current Corn Import Policy
India’s corn imports remain limited due to two main policy hurdles:
- Tariff Barriers: India permits up to 0.5 million tonnes (mt) of corn imports annually at 15% duty. Any quantity above this threshold attracts a steep 50% tariff.
- Ban on GMO Corn: India does not allow imports of genetically modified (GMO) corn, which forms a major part of US production.
In 2024-25, India imported a total of 0.97 mt of corn, mainly from Myanmar (0.53 mt) and Ukraine (0.39 mt). The US accounted for only 1,100 tonnes, a negligible share. These restrictions remain a significant irritant for Washington.
Why Corn Matters to the US
Corn is one of the most important crops globally, serving multiple purposes:
- A key source of carbohydrates for poultry and livestock feed.
- An essential ingredient for making ethanol and other industrial products.
The US is both the world’s largest producer and exporter of corn. In 2024-25, it produced 377.63 mt and exported 71.70 mt. For FY 2025-26, production is projected to rise to 427.1 mt, with exports reaching 75 mt.
Until recently, China was a top buyer of US corn. However, escalating trade tensions between Washington and Beijing have cut China’s purchases to just $2.4 million between January and August this year. As a result, the Trump administration is under growing pressure to find new markets, with India viewed as a major opportunity due to its growing consumption of dairy, eggs, fish, and meat.
India’s Reluctance to Relent
Despite US pressure, India is unlikely to ease its restrictions on corn imports anytime soon. Domestic political and economic factors weigh heavily against such a move.
For instance, Bihar—India’s third-largest maize-producing state after Karnataka and Madhya Pradesh—heads into assembly elections soon. Any decision to allow large-scale imports of US corn could anger local farmers and become a politically sensitive issue. Moreover, India has consistently opposed the entry of GMO crops into its food chain, citing health, environmental, and trade concerns. This stance further complicates the possibility of accommodating US demands.
While the US sees India as a vital untapped market for its surplus corn, New Delhi’s protectionist stance and domestic politics make it unlikely that tariffs or GMO restrictions will be relaxed in the near term. With Washington desperate to expand exports amid shrinking Chinese demand, tensions around corn are set to become another flashpoint in Indo-US trade relations.
Helene Elliott is the senior reporter for News Raise. She covers Science news. She also has a keen interest in photojournalism. Helene holds a nomination for the prestigious Red Smith Award. She is married to author Dennis D’Agostino, a former publicist with the New York Mets.
