The US-India Corn Dispute: A Clash of Agricultural Models and National Interests
UPSC Relevance
Prelims: Indian Economy (Agriculture, MSP, Ethanol Blending Programme, International Trade); Science & Technology (Biotechnology - Genetically Modified (GM) Crops); World Economy (US agriculture, WTO).
Mains:
General Studies Paper 2 (International Relations): Effect of policies and politics of developed countries on India’s interests; Bilateral agreements.
General Studies Paper 3 (Economy/Agriculture): Issues related to direct and indirect farm subsidies and minimum support prices; Food security; Technology missions; Economics of animal-rearing.
Key Highlights from the News
India opposes the strong US demand to import corn from the US. This is a major trade dispute between the two countries.
Main Reasons for India's Opposition:
Most American corn is Genetically Modified (GM). India has strict regulations on GM food crops.
Importing cheap American corn will destroy the livelihoods of Indian corn farmers. This would be equivalent to dumping.
One of the main objectives of India's Ethanol Blending Programme is to provide additional income to farmers. Corn imports will defeat this objective.
India is achieving self-sufficiency in corn production, so there is no need for imports.
Reasons Behind US Pressure:
The US needs to find new markets for its massive corn production.
Following the trade dispute with China, the US lost a large export market.
The powerful farmer lobby in the American states known as the "Corn Belt" has significant influence in their politics.
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