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India risks losing its export competitiveness in the European market if it allows genetically modifi.


Date: 05-07-2025
Subject: India risks losing its export competitiveness in the European market if it allows genetically modifi
India risks losing its export competitiveness in the European market if it allows genetically modified (GM) animal feed imports from the United States under the upcoming trade deal, according to the Global Trade Research Initiative (GTRI). The economic think tank issued a cautionary statement on Saturday, highlighting the impact such a move could have on India's agricultural shipments to key markets like the European Union (EU), known for its strict stance on genetically modified products.

India and the US are currently negotiating an interim trade pact, which is expected to be announced before July 9. Among the proposals being considered is the import of GM-derived products such as soybean meal and distillers dried grains with solubles (DDGS), a by-product made during ethanol production, usually from corn or other grains, for use in animal feed.

GTRI founder Ajay Srivastava said the consequences of such imports could be severe for India's agri-export sector, especially when it comes to European buyers who maintain strong resistance to GM-linked products. While GM feed is technically permitted in the EU, many European consumers prefer fully GM-free supply chains, and the region enforces stringent GM labelling regulations.

Srivastava warned that India’s fragmented agricultural logistics network and absence of proper segregation systems increase the risk of cross-contamination. This could lead to trace GM presence in export consignments, potentially triggering shipment rejections and additional testing expenses. More importantly, it could damage India's image as a GMO-free supplier in sensitive segments such as rice, tea, honey, spices, and organic foods.

"This could lead to shipment rejections, higher testing costs, and erosion of India's GMO-free image, especially in sensitive sectors like rice, tea, honey, spices, and organic foods. Without robust traceability and labeling systems, GM feed imports could hurt India's export competitiveness in the EU," Srivastava said.

He described genetically modified crops as plants that have been engineered by introducing specific genes—often from bacteria, viruses, other plants, or in some cases, animals—into their DNA to give them traits such as pest resistance or tolerance to herbicides. For example, the BT gene from the bacterium Bacillus Thuringiensis allows the plant to produce a protein toxic to specific insects. Genes from soil bacteria have also been used to help plants survive herbicides.

Srivastava clarified that although GM crops are biologically plant-based and considered vegetarian, the presence of animal-origin genes in some crops might pose issues for communities or individuals with strict religious or ethical interpretations of vegetarianism.


He added that studies suggest GM DNA breaks down during digestion and does not enter the animal's meat, milk, or other produce. "Therefore, foods like milk or chicken are not classified as GM, even if the animals were fed GM feed. However, critics argue that this blurs the line for consumers who wish to avoid GM-associated products entirely," he said.


On whether farmers can reuse seeds from genetically modified crops, Srivastava said GM seeds are usually not reusable for both legal and biological reasons. They are often patented and sold with contracts that forbid saving and replanting. Additionally, many GM crops are hybrids, and seeds collected from them generally perform poorly when reused. He pointed out that in India, Bt cotton is the only GM crop officially approved for cultivation. Though some farmers have attempted to reuse Bt cotton is the only GM crop officially approved for cultivation. Though some farmers have attempted to reuse Bt cotton seeds, the results have typically been substandard.

Srivastava said contamination risks persist globally, as GM and non-GM crops can mix at various stages including transport, storage, and processing.

According to GTRI, India maintains a cautious stance on GM crops. Currently, only Bt cotton is approved for cultivation, and no GM food crop has received commercial approval, though field trials are ongoing. The country allows imports of genetically modified soybean oil and canola oil, but does not permit imports of GM grains, pulses, oilseed ..

GM feed materials like soybean meal and DDGS remain banned, Srivastava said.


Source Name : Economic Times


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