After oil and defense trade, the United States has now shifted its criticism of India toward the agricultural sector, particularly corn. Howard Lutnick, a senior aide to President Donald Trump and currently serving as the US Commerce Secretary, sharply criticized India for its "unwillingness" to import American maize. His remarks have sparked debate, especially given the fact that India ranks among the top ten maize producers globally and was a consistent exporter until recently. However, India’s ambitious ethanol blending program has transformed its corn consumption patterns, turning it into a net importer in 2024 for the first time in years.
In his comments, Lutnick questioned why a nation of 1.4 billion people would not buy American corn, despite trading extensively with the US in other areas. He lamented India’s trade tariffs and suggested that Washington was being treated unfairly. Corn is among America’s most significant agricultural exports, with the US accounting for nearly a third of global output. India, by contrast, produces about 42 million tonnes annually—roughly 3% of the world’s supply—and in 2022-23 earned over $10 billion from maize exports. But large-scale diversion of maize toward ethanol production, coupled with drought conditions in Maharashtra, shifted the balance and forced India to import maize to meet domestic demand.
The ethanol blending push was central to this transformation. India diverted a record 10 million tonnes of maize to ethanol production in 2023 alone, aiming to accelerate its Ethanol Blended Petrol (EBP) program. The country achieved its target of 20% blending (E20) by 2025, five years ahead of schedule. While sugarcane had historically been the main source of ethanol, restrictions on its use due to drought and sugar price concerns meant maize became a critical alternative. This shift strained traditional users of maize, such as the poultry and starch industries, and created a domestic shortfall of around 5 million tonnes.
For Washington, however, India’s new status as a corn importer is being viewed as an opportunity. The US is sitting on an oversupply problem, with projections for record-high corn output of 427 million tonnes in 2025-26, fueled by subsidies and mechanized farming. Domestically, only a fraction of this corn is consumed as food, with much of it destined for feed, ethanol, or exports. Yet, American farmers face a dilemma: traditional buyers like China are turning to Brazil for maize, leaving the US scrambling to find new markets. This has heightened lobbying from the American corn and ethanol industry to pressure India into becoming a buyer.
There remains, however, a fundamental barrier. More than 90% of US corn is genetically modified, a variety India restricts both for consumption and cultivation. Instead, India has sourced its imports from Myanmar and Ukraine, which grow non-GM varieties. This regulatory and cultural roadblock makes American maize unattractive, regardless of Washington’s pressure. Analysts have described Lutnick’s push as ironic and even neo-colonial, comparing it to the US asking Saudi Arabia to import American oil—a product it clearly does not need.
India’s ethanol program, aimed at cutting crude oil imports and reducing emissions, has undeniably reshaped its agricultural landscape. While it has created vulnerabilities in maize availability, it also underscores India’s self-reliance goals. On the other hand, America’s desperation to export corn reflects structural problems in its farm economy, which is heavily subsidized and reliant on foreign markets. Lutnick’s pointed attack on India comes at a time when Washington has also signaled interest in reviving trade talks with New Delhi. By linking the corn issue with broader trade disputes—such as dairy market access and oil imports from Russia—the US appears to be using agricultural exports as leverage.
Ultimately, the clash highlights two competing realities: India’s balancing act between food, fuel, and trade, and America’s search for buyers to absorb its agricultural surplus. Lutnick’s rhetoric may have been provocative, but at its core lies a simple fact—the US corn industry is struggling to find markets, and India, though newly an importer, may not be willing to compromise on its restrictions or self-reliance goals. For now, the possibility of India importing large volumes of American corn remains slim, leaving this dispute more symbolic than substantive.
