In a bid to tackle rising food inflation, India has announced limited duty concessions on corn imports. On Wednesday, the government allowed the import of 500,000 metric tons of corn under the tariff-rate quota (TRQ) system, which enables importers to pay lower or no duties. This move aims to stabilize domestic prices and ensure sufficient supply amid high demand from the poultry and ethanol industries.
India, which has been grappling with persistent food inflation at around 8% year-on-year since November 2023, is taking measures to ease price pressures caused by adverse weather impacting local crops. By allowing duty-free imports of corn, the government hopes to alleviate some of the strain on domestic markets.
The government has designated cooperatives and state-run organizations such as the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) to manage these imports. This strategy is expected to provide a buffer against the rising domestic corn prices driven by strong demand.
India's domestic corn market has been under pressure due to its extensive use in the poultry feed and ethanol production sectors. With the new import concessions, the government aims to ensure that supply meets demand, thereby curbing the price rise.
Despite these concessions, the government maintains strict regulations on the import of genetically modified food crops. All imported corn must comply with these rules, ensuring that no genetically modified organisms enter the Indian market.
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