Chart showing commodity exports from the US to India

Supply/Demand Basics

  • In 2020 India exported 1.9 MMT of corn and in 2021 almost 3.2 MMT.
  • Feed prices remain high, limiting growth. Broiler placement limited to close to 4 billion chickens, but demand remains high. 
  • Industrial chemical sector expected to grow and move to sustainable/green chemicals in near future. 

Country Overview

Chart showing information on India's population

  • Economic impact due to Covid-19 continues with unemployment at a high of 8%.
  • US-India trade policy momentum with the US-Indian Strategic Clean Energy Partnership and a US-India Biofuels Taskforce formed. 
  • Consumers demand better products, but prices remain high, limiting consumption in metros, but purchasing power increases seen in tier 2 and 3 cities.  
  • GOI repealed the Agricultural Reform Laws under pressure from farmer lobby pushing back any agricultural import related issues.

Trade and Market Share Overview

  • At 144 million gallons, India remains second largest importer of U.S. ethanol. 
  • In 2021, the national average blend rate was 7.66%, against GOI target of 8.5%
  • Pressure on GOI to not use grains for ethanol production as targets are enhanced to 20% and allow imports of co-products to match the plant protein demand.
  • Post covid-19 recovery was seen in 2021 but will slow down again in first half of 2022.
  • India imported 0.62 MMT of SBM, of which small quantity was from US. It sets a precedent for allowing GM co-products imports in future 

Policy Overview

  • India does not allow use of GM seeds in any crop, except cotton. Farmers in some areas have started sowing crops like corn, soy and cotton with unapproved events.
  • GOI recently issued notifications requiring GM free origin certifications for 24 crops including corn. This would affect the starch and poultry sectors, who import corn from Ukraine and African origins. 

Graph showing the value of US imports to India over time