India’s poultry sector is under intense pressure as rising feed costs threaten to derail profitability and long-term sustainability. With ongoing trade negotiations between India and the United States, industry leaders are calling for access to genetically modified (GM) feed grains as a potential solution—an idea that is stirring significant controversy.
Trade Talks at a Critical Stage
As trade discussions with the U.S. advance, the issue of tariffs on agricultural goods has taken center stage. The Poultry Federation of India is urging negotiators to consider easing restrictions on GM imports, particularly soybeans and corn, to help mitigate the financial strain on domestic producers.
Feed Costs Cut Deep
According to a February 2025 survey conducted by Crisil Ratings across 30 poultry farms, producers could see their profitability drop by as much as 50% during the 2025–2026 marketing year. The decline is largely attributed to the sharp increase in prices of essential feed ingredients such as corn and soybeans.
Tariff Barriers Limit Options
India maintains high import tariffs on key feed grains like soybeans—ranging from 45% to 56.5%—effectively shutting out U.S. exports and limiting domestic access to cheaper alternatives. These trade barriers have exacerbated feed shortages and elevated costs for poultry producers across the country.
Industry Pushes for GM Access
Poultry sector representatives argue that allowing GM grain imports could stabilize feed prices and ease the ongoing supply crunch. Major business groups, including the Confederation of Indian Industry (CII), have joined calls to permit GM soybean and corn imports, citing an “unprecedented” rise in costs that threatens to destabilize the sector.
NITI Aayog Supports Targeted Tariff Relief
In June, India’s public policy think tank NITI Aayog recommended a nuanced approach to tariff reform—advocating for lower duties on imported feed grains while maintaining protective barriers for finished agricultural products such as poultry and dairy. The agency emphasized the importance of securing reciprocal benefits in trade deals without compromising domestic competitiveness.
Opposition Raises Red Flags
Despite growing support from industry and government bodies, the proposal has met strong resistance. Critics warn that reducing tariffs on GM feed grains could expose India’s agricultural sector to long-term risks. The Global Trade Research Initiative (GTRI) has cautioned that once the trade deal is signed, reintroducing protective tariffs would be difficult.
Analysts also raised alarms over the impact of subsidized U.S. GM grain on Indian farmers, suggesting it could flood the market and disrupt domestic production. There are also concerns about food security and regulatory oversight, as critics argue that India lacks the infrastructure to tightly control the distribution and labeling of GM products.
A Delicate Balance Ahead
As India edges closer to finalizing its trade deal with the U.S., policymakers are walking a tightrope between supporting a struggling poultry sector and protecting the broader agricultural ecosystem. The outcome of these negotiations could reshape the landscape of Indian poultry production—and set a precedent for how the country handles GM imports in the years to come.
