Why India Won’t Buy U.S. Corn: 3 Big Reasons Behind the Trade Standoff

India’s refusal to buy U.S. corn has become a key issue in trade discussions, with U.S. officials, including President Donald Trump, criticizing India’s high tariffs and market restrictions. India, once dependent on food imports, has transformed into a self-sufficient agricultural powerhouse, exporting grains, dairy, and other produce globally. However, Indian farming still faces challenges like low productivity, small landholdings, and inadequate infrastructure, making it vulnerable to foreign competition.

To protect its 700 million farmers, India imposes high tariffs, ranging from 0% to 150%, preventing cheap, subsidized U.S. farm products from flooding its market. Unlike the U.S., where large-scale commercial farms dominate, India relies on small, subsistence farming that supports millions of livelihoods. While both nations trade agricultural products, the U.S. now seeks to expand its exports of corn, wheat, and dairy to reduce its $45 billion trade deficit with India. However, past farmer protests in India over low crop prices and government support highlight the political risks of opening the sector to foreign competition.

For now, India is holding its ground, focusing on trade deals that benefit its economy while safeguarding its rural backbone, leaving Trump to decide how long he’s willing to wait.

Why India Won’t Buy U.S. Corn: 3 Big Reasons Behind the Trade Standoff

India has long been a crucial market for U.S. agricultural trade, but recent demands from American officials have heightened tensions. U.S. Commerce Secretary Howard Lutnick has questioned India’s refusal to buy American corn, criticizing its trade policies. President Donald Trump has also labeled India a “tariff king” due to its high import duties, pushing for greater access to sell U.S. farm products in the country.

India’s Agricultural Transformation: From Hunger to Self-Sufficiency

In the past, India faced severe food shortages and relied heavily on imports to feed its people. However, over the decades, advancements in farming techniques, irrigation, and high-yield crops have turned the country into a food-surplus nation. Today, India not only produces enough to feed its massive population but also exports grains, dairy, and other agricultural goods.

Despite this progress, Indian farmers still struggle with small landholdings, low productivity, and poor infrastructure. The average farm size in India is less than one hectare, while in the U.S., farms span over 46 hectares on average. This stark contrast makes Indian agriculture less competitive compared to large-scale, mechanized American farming.

Why India Shields Its Farmers

Even though India produces a surplus of food, the government imposes high tariffs—ranging from 0% to 150%—on agricultural imports. The reason? To protect millions of small farmers from cheap, subsidized foreign produce.

Agriculture remains the backbone of rural India, supporting nearly 700 million people, or about half the population. Yet, it contributes only 15% to the country’s GDP, highlighting the sector’s fragility. If India were to open its markets to heavily subsidized U.S. crops like corn, wheat, or dairy, local farmers could be wiped out by cheaper imports. Unlike in the U.S., where farming is a large-scale corporate business, most Indian farmers rely on small plots for survival.

U.S. Farm Subsidies vs. India’s Struggling Farmers

The U.S. government provides massive subsidies to its farmers, making American crops significantly cheaper in global markets. If India allowed unrestricted imports, its farmers—who receive minimal support—would struggle to compete. This imbalance has made India cautious in trade negotiations.

Trade Talks: A Delicate Balancing Act

India and the U.S. already trade agricultural goods. India exports rice, shrimp, honey, and spices, while the U.S. sells nuts, apples, and lentils to India. However, the U.S. now wants to expand its exports to include major crops like corn and wheat, aiming to reduce its $45 billion trade deficit with India.

But India is unlikely to agree easily. Past farmer protests have shown how sensitive the issue is—any move that threatens local crop prices could lead to widespread unrest. Experts suggest that India should negotiate carefully, ensuring any trade deal benefits its farmers rather than simply accommodating U.S. demands.

Instead of opening up its agriculture sector, India could push for better terms in industrial goods or technology trade. This way, trade discussions can continue without harming India’s farming sector.

India’s Long-Term Strategy: Protecting Farmers First

For now, India remains focused on protecting its farmers while engaging in trade talks. The government understands that sacrificing agriculture for a quick deal could have severe economic and political consequences. The question is whether the U.S. will accept this stance or continue pressuring India to open its markets.

As negotiations progress, India’s priority remains clear: safeguarding its farmers, even if it means saying no to American corn.