A fresh flashpoint has ignited in India-US trade relations after U.S. Commerce Secretary Howard Lutnick criticised India for “not buying even a bushel of U.S. corn.” The remarks come amid tension over tariffs, agricultural trade access, and wider geopolitical pressure.

India, once a net maize exporter, has recently become an importer. This turnaround is due largely to its drive to increase ethanol blending in petrol. As ethanol plans ramped up, maize which earlier fed poultry, starch, and other industries has been increasingly diverted toward fuel production.

But India’s resistance isn’t purely economic. Most U.S. corn is genetically modified (GM), which India restricts for food, feed or seed, citing concerns over food safety, seed sovereignty, and protecting small farmers from dependency and high costs.

Meanwhile, the U.S. appears keen to open India’s market for its corn both to reduce agricultural surplus and as a strategic move in trade negotiations.

For now, India stands firm: higher ethanol blending targets, self-reliance in agriculture, and cautious import policies remain priorities. How this tension resolves could have broader implications for global farm trade, food vs fuel debates, and the balance between trade obligations and national policy.