India Says No to US Farm Imports: Prioritizing Self-Reliance
Eminent agricultural scientist Ashok Gulati has urged India to relax tariffs on US imports of soybean, corn, and skimmed milk powder, warning of missed export opportunities amounting to US$50 billion if India does not open up its agriculture and dairy sectors. He questioned why tariffs on soybean, corn, and milk remain between 50-60%, while edible oils, for instance, attract just 10%.
But a closer look reveals India may not need these imports. India is already a major producer of corn—producing over 42 million tonnes—and its imports of corn from the US in FY25 were very minor. Exports of milk and dairy products from India stood at US$272.6 million in FY24. Domestic per-capita milk availability has also increased, reaching 471 grams per day by February 2025, well above the Indian Council of Medical Research’s (ICMR) recommendation of 300 grams.
The National Institution for Transforming India (NITI Aayog) had earlier suggested in a report titled “Promoting India-US Agricultural Trade Under the New US Trade Regime” that allowing imports of GM soybeans and corn (for feed/industrial use) might be useful, while keeping restrictions on food-grade GM crop imports. This proposal, however, was quietly withdrawn after protests from farmer groups and industry stakeholders.
Moreover, India remains heavily dependent on imports of edible oils, which account for over 55% of the country’s consumption, with palm oil being the biggest share, followed by sunflower oil and soyoil. In contrast, soy-oil represents a smaller but growing share. The article argues that India does not need US farm imports for products like corn or milk given existing production, cultural concerns, regulatory standards, and risks to domestic farmers.
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The debate underscores a tension between trade liberalization and food sovereignty. While reducing barriers to imports could improve availability and possibly reduce some input costs, it risks undercutting domestic producers—especially small and marginal farmers who form the bulk of India’s dairy and crop sectors. With corn production already strong and milk supply exceeding nutritional benchmarks, the economic benefit of opening up may be marginal relative to the risks of dependency or domestic price pressure.
Additionally, there are cultural, regulatory, and biosecurity dimensions to consider. India’s rules around GM crops and food labeling, its definition of vegetarian milk, and consumer concerns could make imports controversial beyond economics. The withdrawal of NITI Aayog’s earlier proposal after backlash shows how sensitive these issues are. Policies will need to navigate not just tariffs, but public trust, farmer livelihoods, and regulatory consistency if trade adjustments are made.
Source : Dairynews7x7 Sep 23rd 2025 Read the original story here