- US warns India may face “tough time” if it rejects US corn imports.
- Lutnick claims India blocks US goods while exporting freely to the US.
- Dispute focuses on genetically modified US corn, banned in India.
- Tariffs on Indian imports linked to Russian oil purchases sparked tensions.
GG News Bureau
Washington, 15th Sept: Even before formal trade negotiations resumed, the United States signalled pressure on India, with US Commerce Secretary Howard Lutnick warning that New Delhi could lose access to the American market if it refuses to purchase US-grown corn.
In an interview with Axios, Lutnick criticised India for blocking American products while selling freely to the US. “India brags that they have 1.4 billion people. Why won’t 1.4 billion people buy one bushel of US corn?” he asked, referring to the standard 35.2-litre measure used for dry goods. He added that President Donald Trump has asked India to “bring down your tariffs, treat us the way we treat you,” warning that failing to comply could make doing business with the US “tough.”
The dispute centers on genetically modified (GM) US corn, which India neither cultivates nor allows for human or animal consumption, citing safety concerns. The Indian government has also shelved proposals to grow GM corn for ethanol. Lutnick pointed out that US corn is cheap and widely used for human consumption and animal fodder, pressing India to open its market.
The warning comes after a period of diplomatic tension over India’s purchase of Russian oil, which led to the US imposing 25 per cent duties on Indian imports. India has described these measures as “unfair, unjustified and unreasonable,” stressing that its energy procurement is guided by national interest.
Despite weeks of friction, US-India ties show signs of warming. Trump last week indicated he would speak with Prime Minister Narendra Modi in the coming weeks, expressing optimism for a trade deal. Following this, US trade negotiators are expected in New Delhi for talks later this week.
However, Lutnick’s warning underscores the continuing challenges, as American agricultural groups face financial stress amid falling Chinese demand, a consequence of the ongoing US-China trade tensions.
While the US works to stabilise relations with Beijing, it appears to be turning to India as a potential new market for its crops, seeking relief for struggling American farmers and safeguarding a key voter base.
Comments are closed.