FX.co ★ India Offers to Buy US Corn for Ethanol as Part of Trade Deal Talks

India is considering purchasing U.S. corn for ethanol production and increasing energy imports as part of new proposals aimed at reaching a trade agreement, according to a report by The Economic Times. In exchange, India has called on the U.S. to lift the 25% punitive tariffs placed on Indian imports of Russian oil, tariffs that the U.S. argues contribute to funding the ongoing conflict in Ukraine. "New proposals have been introduced," an official remarked. "There is ongoing discussion about acquiring corn for ethanol production." The U.S. has been urging India to boost its imports of American soybeans and corn. However, India has been reluctant, citing concerns over the potential entry of genetically modified (GM) crops into the food supply. Indian officials have underlined the importance of protecting domestic farmers and keeping GM products out of the market. As per government data, in August, India exported goods worth USD 6.86 billion to the U.S., while its imports stood at USD 3.6 billion.