A new trade tension between India and the US, moving away from an earlier focus on Russian oil and switching to agriculture, especially corn exports from the United States. The US trade negotiators have sought to persuade India to open up its market, arguing that India sells to the US, but does not buy much from the US. Corn is especially central to this issue because the US is the largest producer of corn, but has been draining supplies as many other countries, including China, reduced their purchases of US corn after Trump imposed tariffs on China, which reduced incomes of American farmers.
The US believes that India, with its 1.4 billion consumers, represents a good opportunity. However, India is cautious about the proposal, citing some risk in depending on the United States, distrust that policy could change in the future, and concerns about genetically-modified (GMO) crops, which India has limited in trade with the United States (allowing only GMO cotton). India is largely self-sufficient in corn, as it is used as food, grain for poultry, and ethanol. The US wants India to agree to a process of purchasing corn from the US for the periods when it has shortfalls, but India remains cautious. While the corn sales issue could affect negotiations for future trade issues, it may also impact the US-India relationship.
