India-US trade pact: GTRI flags GM food risk; warns of EU export hit

Time of India

a day ago

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The Global Trade Research Initiative (GTRI) has raised red flags over the potential inclusion of genetically modified (GM) agricultural products in the proposed interim trade pact between India and the United States, warning that such a move could harm India's agri-export competitiveness, particularly in the European Union.
According to news agency PTI, the pact is expected to be announced before July 9.
GTRI cautioned that permitting imports of GM feed materials like soybean meal and distillers dried grains with solubles (DDGS), a by-product from ethanol production, could result in cross-contamination within India's fragmented agricultural supply chain, affecting the country's ability to maintain a GMO-free status.
Ajay Srivastava, founder of GTRI, said that 'shipment rejections, higher testing costs, and erosion of India's GMO-free image' are likely if GM feed imports are allowed without robust traceability systems in place.
He explained that while GM feed is technically permitted in the EU, many European buyers prefer fully non-GM supply chains, making trace elements of GM origin a major hurdle.
As per PTI, Srivastava said, 'Without robust traceability and labeling systems, GM feed imports could hurt India's export competitiveness in the EU, especially in sensitive sectors like rice, tea, honey, spices, and organic foods.'
He further explained that although GM feed doesn't alter animal produce like milk or meat, the presence of GM material in the feed supply chain raises ethical and regulatory concerns.
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'Critics argue that this blurs the line for consumers who wish to avoid GM-associated products entirely,' he said.
Srivastava also pointed out that GM seeds are mostly non-reusable due to hybrid structures and patent laws, with India currently allowing only Bt cotton as the sole GM crop for commercial cultivation.
Import of GM grains, pulses, oilseeds, and feed like DDGS is banned under current regulations, though GM soybean and canola oil are allowed.
Citing broader concerns, GTRI also urged India to retain tariff flexibility on American farm goods under the proposed trade agreement. It argued that 'removing tariffs would expose Indian farmers to subsidised US imports, jeopardising food security and rural livelihoods.'
'India must retain policy space to manage food stocks, support rural incomes, and respond to global shocks. In today's geopolitically unstable world, food security must remain sovereign,' Srivastava said.
GTRI warned that liberalising imports of US farm products, including rice, dairy, poultry, corn, and GM soy, would benefit from deep American subsidies, putting India's fragmented and smallholder-based agriculture sector at risk.
For instance, US subsidies have covered up to 82% of production value in rice and over 200% in wool.
The think tank said any commitment to reduce agri tariffs permanently would be 'strategically unwise', especially when even the US maintains high barriers in its own farm trade, with tobacco tariffs as high as 350%.
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