Grain Diplomacy: US GM Feed Could Break India Trade Deadlock, Legal News, ET LegalWorld
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As the July 9 deadline for concluding the India-US trade deal approaches, a quiet yet potentially transformative breakthrough is emerging. India is considering allowing imports of select genetically modified (GM) products used in animal feed—a move that could unlock an ambitious new phase in bilateral trade.This development could offer a pragmatic path forward in a negotiation otherwise gridlocked over sensitive issues like dairy and agricultural tariffs. Sources close to the talks confirm that India may permit the inbound shipment of soybean meal and distillers dried grains with solubles (DDGS)—two key by-products of US corn and soy production widely used as animal feed.This middle-ground solution avoids direct exposure to politically sensitive sectors like food and dairy, while still delivering economic value to both sides. For the US, it provides a win for its powerful farm lobby. For India, it helps support its growing poultry and livestock industries by enhancing feed availability and possibly stabilizing domestic prices.'It's a smart compromise,' said a senior official familiar with the negotiations. 'It maintains India's food sovereignty and farmer protections while signaling openness to calibrated trade liberalisation .'Beyond the immediate deal, this step could mark the beginning of a more nuanced approach to GM-related imports. While food-grade GM crops remain restricted, India already imports GM-derived edible oils. Introducing GM-based feedstock represents a strategic shift in policy thinking, balancing food safety concerns with economic needs.Final announcements on the deal, which may be unveiled in phases, are expected no later than midnight of July 6. Officials suggest that while dairy and core farm tariffs are off the table for now, a broader spirit of flexibility and mutual respect is guiding the talks.If successful, the agreement could pave the way for a deeper, more resilient economic partnership between the world's two largest democracies—anchored in pragmatism, respect for domestic priorities, and a shared vision for the future.
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