Corn Production In India and Trade: Why Doesn’t India Import US Corn?

Corn, also known as maize, is one of the most important cereal crops in the world. Recently, US Commerce Secretary Howard Lutnick raised a question on why India doesn’t buy US corn, despite being a significant exporter of maize to the United States and other nations. This has brought global attention to India’s maize production, export dynamics, and trade policies.

In this article, we break down India’s corn industry, global rankings, trade partners, and the reasons behind its limited imports from the United States.

Corn Production in India

India is the 5th largest producer of maize in the world, according to FAO data (updated December 2023). The country produces around 42 million tonnes of maize annually, contributing about 3% of the global output.

In comparison, the United States is the world’s largest producer of corn, accounting for nearly 30–32% of global maize production.

Season-Wise Distribution of Corn in India

• Kharif Season (June–October): Around 70% of India’s maize is cultivated during the monsoon.

• Rabi Season (November–March): Accounts for 23% of total production.

• Summer/Zaid Season (April–June): Contributes 7% of the total maize output.

This seasonal spread allows India to maintain a steady domestic supply while also supporting its growing export demand.

India’s Position in Global Corn Exports

Despite being the fifth-largest producer, India is the 14th largest exporter of maize globally (UN-COMTRADE, 2022).

• Annual Export Value: $10,107 million

• Major Export Destinations: Vietnam, Nepal, Bangladesh, Malaysia, Thailand

India’s maize exports are more focused on Asian markets due to geographical proximity, lower logistics costs, and established trade agreements.

Why Doesn’t India Import US Corn?

Howard Lutnick’s question highlights a crucial aspect of India–US trade relations. Here are the major reasons why India doesn’t significantly import corn from the United States:

1. Self-Sufficiency in Production

India produces enough maize to meet its domestic demand for food, fodder, and industrial use (starch, ethanol, poultry feed). Import dependence is minimal.

2. Price Competitiveness

US corn, though high-quality, often comes at a higher landed cost due to freight charges, tariffs, and compliance with India’s import policies. Nearby exporters like Vietnam or Nepal offer more cost-effective alternatives.

3. Agricultural Trade Policies

India maintains protective policies for domestic farmers. Import duties on corn help safeguard local maize producers from being undercut by cheaper foreign imports.

4. Non-GMO Preference

Most US corn is genetically modified (GMO), whereas India has strict restrictions on GMO imports. India’s poultry and feed industries prefer non-GMO maize, which the US cannot easily supply.

5. Regional Trade Focus

India has built long-standing trade networks with South Asian and Southeast Asian nations, which are geographically closer and more dependent on Indian maize exports.

India’s Maize Demand and Consumption

• Food Use: Traditional dishes, corn flour, and snacks.

• Feed Use: Poultry and livestock feed (a growing sector).

• Industrial Use: Starch, ethanol, and biofuels.

With rising demand from the poultry industry and ethanol blending programs, India’s maize consumption is expected to rise in coming years. However, the government is still cautious about large-scale imports due to farmer protection concerns.

India-US Corn Trade: Future Outlook

While the US remains a global leader in corn exports, India’s reluctance to import American maize lies in economic, regulatory, and agricultural priorities. For India to consider large-scale imports of US corn, two key changes would be required:

1. Price Competitiveness: US corn would need to become more cost-effective compared to Asian suppliers.

2. Non-GMO Supply: If the US offers non-GMO maize varieties that comply with India’s import policies, trade could expand.

For now, India continues to focus on boosting its domestic maize productivity and exports rather than relying on imports from the United States.

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