India Negotiates to Buy US Corn for Ethanol as Part of Trade Deal Talks

India could purchase US corn for ethanol production and increase energy imports as part of fresh proposals to reach a trade deal, The Economic Times reported.

In return, New Delhi has pressed Washington to remove the 25% penal tariffs imposed on Indian imports of Russian oil, which the US claims are helping fund the war in Ukraine.

“Fresh offers have been made… There is a discussion to buy corn for ethanol production,” said an official.

The US has been encouraging India to increase imports of American soybeans and corn, but India has resisted, citing concerns over genetically modified (GM) crops entering the food chain.

Officials have emphasized that protecting domestic farmers and preventing GM products from entering the market remain key priorities for the Indian side.

In August, India exported goods worth USD 6.86 billion to the US, while imports were valued at USD 3.6 billion, according to government data.