Mint Explainer | How an obscure item in the India-US trade deal is stirring the pot

Subscribe to enjoy similar stories. Under the interim trade agreement with the US, India has allowed the import of an animal feed item called distillers dried grain with solubles (DDGS), which is made from genetically modified (GM) corn. This has rekindled the debate on the use of transgenics in the farm sector, in addition to concerns that imports may indirectly impact farm gate prices for Indian soy and corn farmers.

Mint explains what’s at stake. DDGS is a protein-rich byproduct of ethanol manufacturing using grains like corn and rice. The US mostly uses GM corn for producing ethanol.

Therefore, DDGS is a GM-based animal feed used for cattle, poultry, and fisheries. In India, ethanol manufacturers produce DDGS, but this is made using non-GM corn (maize) and rice. As per the trade agreement, India will allow duty-free import of DDGS, but in limited quantities.

India has not granted direct market access to US-grown GM soybean and maize. But it has allowed the import of DDGS feed and soybean oil, which India already imports from countries like Brazil and Argentina that grow GM soy. The opposition has criticised this move, citing the fact that India has yet to allow the use of transgenic technologies in food crops (it has only allowed GM cotton to date).

Congress lawmaker and former environment minister Jairam Ramesh termed it a ‘backdoor entry’ of GM crops in food. Bharatiya Kisan Sangh, a farmer union affiliated to the Rashtriya Swayamsevak Sangh, the ideological parent of the ruling BJP, has also objected to the entry of DDGS. In addition, experts have raised concerns that imported feed can depress farmgate prices for Indian farmers growing soybean and corn, which are mostly used to manufacture animal feed.