InfoSAWIT, NEW DELHI — India is expected to restrict duty-free imports of soybeans and corn from the United States for human consumption under a draft trade agreement being discussed with Washington. The Indian government is instead offering limited market access for US agricultural products linked to the energy sector and animal feed, according to sources familiar with the negotiations.
During the talks, New Delhi is said to be firmly maintaining its red lines in the agricultural sector to protect domestic farmers. “Soybeans are outside the scope of the agreement,” one source directly involved in the negotiations told InfoSAWIT, as reported by India Times on Friday (6/2/2026).
Despite this stance, India may still open its market to several other US agricultural products. Commodities such as sorghum and distillers-dried grains with solubles (DDGS)—a by-product of corn-based ethanol production commonly used as poultry and livestock feed—are said to have the potential to gain limited access to the Indian market.
In addition, a number of US-origin nuts are expected to receive duty-free treatment. American almonds, cashews, pecans, walnuts, and pistachios are seen as having strong prospects in India, amid growing consumer awareness of healthy lifestyles that is driving higher nut consumption.
The United States has long pushed India to increase imports of soybeans and corn. However, these efforts have repeatedly faced resistance from New Delhi, mainly due to concerns over genetically modified (GM) varieties.
Opposition has also come from domestic industry players. Last year, the Soybean Processors Association (SOPA) urged India’s Ministry of Commerce to reject a proposal to import GM soybean meal from the US. SOPA argued that India still has sufficient domestic supply and that opening imports would harm local farmers.
“Granting permission to import GM soybean meal at this stage would have a devastating impact on India’s agricultural sector,” the association wrote in an official letter to the government.
India’s firm position in the negotiations underscores that agriculture remains a sensitive issue in bilateral trade relations. While New Delhi is willing to offer opportunities for certain commodities, it appears unwilling to sacrifice the interests of domestic farmers in exchange for trade concessions with the US. (T2)
