India–US Trade Deal & GM Crops Issue

Context: The ongoing India–US Bilateral Trade Agreement (BTA) talks face a roadblock due to the US push for genetically modified (GM) crop imports, particularly soybean and corn.

1. Trade Sensitivities:

   • India considers dairy sector highly sensitive, impacting lakhs of rural livelihoods.

   • US willing to drop dairy demands in BTA, but still pushes for access to GM soybean and corn.

2. Legal and Policy Barriers:

   • India does not allow import of GM crops under current regulatory frameworks.

   • Genetic Engineering Appraisal Committee (GEAC) is the apex body for approving GM trials.

3. Farmer and Civil Society Opposition:

   • Farmer unions and RSS-affiliated BKS oppose GM crops citing contamination risks and demand organic farming.

   • Concerns over subsidised US farm products harming Indian agriculture.

4. Strategic Pressure from the US:

   • US seeks new buyers for GM soybean and corn due to fall in exports to China (China accounts for 55% of US soybean and 26% of corn exports).

   • India is seen as a potential alternate market.

5. Domestic Policy Conflict:

   • A NITI Aayog paper suggested allowing GM farming (GM soybean), but was withdrawn after protests.

   • Punjab Agricultural University consented to Bayer’s field trial of GM corn, sparking controversy.

6. Broader Trade Imbalance Context:

   • India’s exports to the US (FY25): $86.51 billion

   • US exports to India: $45.69 billion, with agri exports at just $373 million in 2023.

7. Trade and Food Security Linkage:

   • Opening India’s food and agriculture markets to GM imports may affect food sovereignty, consumer choice, and long-term biodiversity.

UPSC Prelims Points

1. GEAC (Genetic Engineering Appraisal Committee):

   • Nodal authority under Ministry of Environment, Forests and Climate Change (MoEFCC) for approving GM crop field trials and release.

2. Current GM Crop Status in India:

   • Only Bt cotton is commercially cultivated.

   • GM soybean, corn, and mustard are not yet approved for commercial cultivation or import.

3. Recent GM Corn Trial:

   • Bayer was granted permission by GEAC to conduct field trials of 2 GM corn varieties.

   • Trials approved with consent from Punjab Agricultural University.

4. India's Stand on GM Crop Imports:

   • India’s laws currently prohibit import of GM food/feed (under FSSAI and Environment Protection Act).