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India May Consider Import of GM Animal Feed in US Trade Deal

Written by: Team Angel OneUpdated on: 4 Jul 2025, 9:50 pm IST
India may permit select GM feed imports from the US, including soymeal and corn byproducts, as part of trade talks ahead of the July 9 tariff deadline.
India May Consider Import of GM Animal Feed in US Trade Deal
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India is considering a policy shift that could allow genetically modified (GM) animal feed products from the United States to enter the domestic market. The move, seen as a potential trade-off in ongoing discussions with Washington, may help secure a bilateral deal before 9 July, the day higher US tariffs are expected to be enforced.

Trade Discussions Intensify Ahead of Tariff Deadline

As per news reports, Indian authorities are exploring the possibility of permitting the import of processed GM goods, such as soybean meal and corn-based ethanol byproducts like distillers' dried grains with solubles (DDGS). These products are commonly used in animal feed and are being discussed as limited exceptions, even though India maintains a firm ban on the import and cultivation of GM food crops. 

Discussions between Indian and US officials have intensified in recent days. US Treasury Secretary Scott Bessent recently remarked that both nations are “very close” to finalising an agreement. India’s Ministry of Commerce and Industry has yet to comment officially.

Domestic Concerns and Past Resistance

India’s caution stems largely from its strong agrarian base, where millions rely on farming for their livelihood. The government’s firm position against GM food crops reflects longstanding concerns about rural income, food sovereignty, and environmental safety. 

While GM mustard awaits Supreme Court clearance and GM brinjal was rejected in 2010, India does import GM-derived products like soy and canola oils, which already meet about 60% of its vegetable oil demand. Additionally, India is the world’s second-largest cotton grower, with over 90% of the crop being genetically modified.

Balancing Trade Goals with Local Sensitivities

While the potential import of GM animal feed could ease tensions in the current trade dialogue, it also presents a balancing act for the Indian government. Accepting such imports might support livestock and poultry sectors with lower-cost feed, yet any perceived threat to local farmers or food safety could provoke pushback. For now, the government appears to be weighing strategic economic benefits against domestic political and ecological sensitivities.

Also Read: India Aims to Boost Basmati Rice Exports to Vietnam, Indonesia, and the Philippines!

Conclusion

As India edges closer to a trade understanding with the US, the proposed easing on GM feed imports underscores the complexity of global negotiations. If finalised, the move would mark a calibrated opening rather than a policy overhaul—aimed at advancing international trade goals without compromising India’s long-held agricultural safeguards.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jul 4, 2025, 4:19 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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