Lutnick’s fury: Why India finds it difficult to buy US corn, Pg 13.

Key Highlights:

• US Commerce Secretary Howard Lutnick criticized India for not importing US corn, despite India's large population.
• In 2024-25, India imported 0.97 million tonnes (mt) of corn, mainly from Myanmar (0.53 mt) and Ukraine (0.39 mt), with only 1,100 tonnes from the US.
• India imposes a 15% tariff on up to 0.5 mt of corn imports annually and a 50% duty on quantities exceeding that, while also prohibiting Genetically Modified (GM) corn.
• In 2024, US corn exports were valued at $13.70 billion, with China's purchases significantly reduced to $331 million due to escalating trade tensions.

Detailed Insights:

• The US is the world's largest producer and exporter of corn, with 377.63 mt produced and 71.70 mt exported in 2024-25, projected to increase to 427.1 mt and 75 mt respectively in 2025-26.
• Rising consumption of animal products in India is projected to increase domestic corn consumption to 98 mt in 2040 and 200.2 mt in 2050 under rapid income growth, necessitating significant imports.
• An estimated 94% of the total area planted to corn in the US in 2024 was under GM varieties, which are currently not permitted for import or cultivation in India.
• A withdrawn NITI Aayog report proposed allowing GM maize imports exclusively for fuel ethanol production, preventing its entry into the food chain.

Key Concepts Involved:

• Tariff: A tax or duty imposed on goods when transported across international borders.
• Genetically Modified (GM) corn: Corn whose DNA has been altered using genetic engineering techniques.
• Minimum Support Price (MSP): The price at which the government purchases crops from farmers to protect them from market fluctuations.