India’s Trade Disagreement with the U.S.

• India’s stance on U.S. corn imports is a key disagreement.

• U.S. Commerce Secretary Howard Lutnick stated that India does not import a single bushel of corn from the U.S.

• India’s maize yield is below four tonnes per hectare, compared to the world average of six tonnes.

• India’s ethanol blending of petrol has forced India to balance its food needs and ethanol production.

• India has ramped up maize feedstock for ethanol production, expected to supply 10 to 12 million tonnes.

• Importing feedstock for ethanol blending defeats the ethanol programme’s purpose of cutting carbon emissions and cutting the oil import bill.

U.S. Agriculture and its Impact on Global Agribusinesses

• U.S. agriculture has shifted from being a feedstock producer to a major agribusiness.

• The World Trade Organization rules led to a shift towards capitalist farming.

• The U.S. is particularly interested in ethanol blending in India for its corn exports.

• Political stakes in corn and soybean exports are significant due to the U.S. midwest region and the China-U.S. standoff.

• India’s freezing of GM corn cultivation and its maize ecosystem for ethanol would make it politically difficult to import GM corn produce.

US tariff tensions is important topic for Civil service exam (WBCS).

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