Mounting feed costs threaten industry stability
India’s poultry industry is facing a critical challenge as feed prices continue to soar, severely impacting profitability. According to a report by Crisil Ratings, poultry farms across the country are expected to see a 50% drop in profitability during the 2025–2026 marketing year due to rising corn and soybean prices. This has prompted industry leaders to advocate for the import of genetically modified (GM) feed grains, particularly from the United States.
Industry pushes for GM imports
Ricky Thaper, Joint Secretary of the Poultry Federation of India, emphasized the urgent need to allow GM soybean and corn imports to ease the burden on producers. The Confederation of Indian Industry (CII) and other trade bodies have echoed this call, citing an “unprecedented rise in feed prices” that threatens the sector’s sustainability.
Trade talks with the US gain momentum
The push for GM feed imports comes amid ongoing trade negotiations between India and the United States. As part of a potential interim trade pact, Indian policymakers are considering reducing tariffs on GM feed grains. Currently, tariffs on US soybeans range from 45% to 56.5%, making imports economically unviable.
NITI Aayog, India’s public policy think tank, has supported the idea of selectively opening the market to GM feed imports while maintaining high tariffs on poultry and dairy products. “India needs to be smart in negotiating reciprocal market access—open where we don’t compete, protect where we must,” the agency stated in a June 2025 report.
Opposition from farmers and trade experts
Despite industry support, the proposal has sparked significant opposition. The Global Trade Research Initiative (GTRI) has warned that allowing GM imports could jeopardize India’s agricultural exports to the European Union, where strict GM labeling laws and consumer resistance prevail. GTRI also raised concerns about the lack of infrastructure in India to prevent cross-contamination, which could damage the country’s GMO-free image in sensitive export sectors like rice, tea, and organic foods.
A delicate balancing act
As India moves closer to finalizing its trade deal with the US, the government faces a delicate balancing act: supporting domestic poultry producers while safeguarding export markets and food sovereignty. The outcome of these negotiations could reshape the future of India’s poultry and agricultural trade landscape.
Sources: Available upon request