As India and the United States move closer to finalizing an interim trade agreement, set to be announced by July 9, 2025, concerns are being raised about the potential consequences for India’s agricultural exports, particularly to the European Union (EU). A recent report by the Global Trade Research Initiative (GTRI) warns that allowing genetically modified (GM) farm products, such as soybean meal and distillers dried grains with solubles (DDGS) from the US, could have significant repercussions on India’s agricultural export competitiveness, particularly to regions like the EU.

India and the US: A New Trade Pact on the Horizon

India and the US are in the final stages of negotiating an interim trade pact that is expected to impact various sectors, including agriculture. While the pact is seen as a step towards strengthening bilateral economic ties, it brings forth concerns related to the inclusion of GM products in India’s agricultural supply chain.

The GTRI, an economic think tank, has voiced its concerns about the potential risks associated with introducing GM products such as soybean meal and DDGS into India’s agricultural market. These products, primarily used as animal feed, are at the center of the debate. GTRI believes that their inclusion could significantly affect India’s agri-exports, especially to countries within the EU, which are critical markets for Indian agricultural products.

The European Union’s Strict Regulations on GM Products

The European Union has stringent regulations regarding genetically modified organisms (GMOs), particularly when it comes to labelling and consumer acceptance. While GM feed is allowed within the EU, many European consumers and businesses remain highly cautious about GM-linked products. The EU’s strict labelling laws require clear identification of any GM content in food products, and consumer resistance remains a major barrier to the acceptance of GM crops.

In particular, Indian exports to the EU, including rice, tea, honey, spices, and organic foods, could face challenges if GM contamination is suspected. The GTRI’s founder, Ajay Srivastava, pointed out that India’s current agricultural infrastructure, particularly its fragmented agri-logistics and lack of segregation facilities, increases the risk of cross-contamination during the export process. This could lead to trace amounts of GM content being present in non-GM products, which is unacceptable in the EU market.

Potential Risks to India’s Agricultural Exports

According to GTRI, the introduction of GM animal feed could harm India’s reputation as a supplier of non-GMO products, particularly in sensitive agricultural sectors. Srivastava warned that the presence of GM content, even in trace amounts, could lead to shipment rejections, increased testing costs, and ultimately damage India’s image as a reliable source of GM-free agricultural products.

India’s lack of robust traceability and labelling systems further exacerbates the problem. Without proper segregation and monitoring, the risk of contamination during transportation, storage, and processing remains high. This could affect India’s export competitiveness, especially in the EU, which has a high demand for GMO-free products.

Genetically Modified Crops: How They Work and Their Impact

Genetically modified crops are created by inserting specific genes into a plant’s DNA to introduce new traits, such as resistance to pests or tolerance to herbicides. For example, the introduction of the BT gene from the bacterium Bacillus thuringiensis allows crops to produce a protein toxic to certain pests, helping reduce the need for chemical pesticides. Similarly, other genes from soil bacteria are used to make crops resistant to herbicides.

However, while genetically modified crops may be plant-based and primarily vegetarian, there are concerns regarding the genes introduced into the plants. Some GM crops contain genes derived from animals, which may be problematic for communities or individuals adhering to strict ethical or religious definitions of vegetarianism. These concerns add another layer of complexity to the debate on GM crop imports.

GM Feed and Its Impact on Animal Products

One of the key arguments in favor of GM crops is that the DNA from genetically modified plants is typically broken down during digestion by animals and does not appear in their meat, milk, or other produce. Research has shown that GM DNA does not enter the food chain in a meaningful way, so products such as milk, chicken, or eggs produced by animals fed GM feed are not classified as GM products.

Despite this, some critics argue that the use of GM feed could blur the lines for consumers who wish to avoid GM-associated products altogether. As Srivastava pointed out, while GM feed does not technically make animal products GM, consumers who are wary of GMOs may still hesitate to purchase animal products that come from animals fed GM feed, creating a potential market challenge for Indian exporters.

The Issue of GM Seed Reusability and Contamination Risks

Another point of contention lies in the use of genetically modified seeds. GM seeds, such as those used in Bt cotton (the only GM crop approved in India), are typically not reusable due to legal and biological restrictions. These seeds are patented and sold under contracts that prohibit farmers from saving and replanting them. Even if reused, GM seeds tend to perform poorly, especially when they are hybrids.

The reuse of GM seeds, even in countries where such practices are allowed, remains a concern due to the risk of contamination. GM and non-GM crops can intermingle at various points in the supply chain, particularly during transport, storage, and processing. This cross-contamination risk poses a significant challenge, especially in India, where the infrastructure for segregating GM and non-GM products is still developing.

The Way Forward: Balancing GM Integration with Export Goals

As India looks to strengthen its trade relationship with the US through the proposed interim trade pact, it faces a delicate balancing act. On one hand, allowing the import of GM products like soybean meal and DDGS could help meet the demand for animal feed in India and potentially reduce costs for farmers and businesses. On the other hand, this could jeopardize India’s position as a supplier of non-GMO agricultural products to key international markets like the EU.

For India, the solution lies in improving its agricultural infrastructure, particularly in terms of segregating GM and non-GM products. Robust traceability systems, better labelling practices, and strict controls on cross-contamination will be crucial in maintaining the integrity of India’s agricultural exports.

India must also take into account the potential consumer backlash against GM products in sensitive sectors. Ensuring that products such as rice, tea, and organic foods are free from GM contamination will be key to preserving India’s competitive edge in the global market.

As India continues to negotiate its interim trade pact with the US, the implications of including GM products in its agricultural supply chain cannot be overlooked. While GM products may provide certain economic benefits, the risks associated with contamination, consumer resistance, and potential damage to India’s reputation as a supplier of non-GMO goods must be carefully considered. Moving forward, India will need to strike a balance between embracing GM technologies and safeguarding its agricultural exports, particularly to key markets like the EU, which have stringent requirements regarding GM products.