India’s poultry sector faces feed crisis amid GM import debate

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India’s poultry sector is grappling with a severe feed crisis as surging prices for corn and soybeans threaten the financial viability of producers across the country. As policymakers edge closer to finalising a trade deal with the United States, industry leaders are urgently calling for access to genetically modified (GM) feed grains to stabilize production costs and maintain profitability.

Escalating feed costs squeeze margins

The poultry industry’s profitability is expected to decline by up to 50% in the 2025/2026 marketing year, driven primarily by a sharp increase in feed prices. According to a Crisil Ratings report, based on a survey of 30 poultry farms in early 2025, feed costs have emerged as the single most significant threat to the sector.

Corn and soybean—essential ingredients in poultry diets—have become increasingly unaffordable, forcing farmers to scale back production or absorb heavy losses. These dynamics have added urgency to ongoing trade discussions, with feed security now viewed as equally important as food security.

Tariff barriers limit feed grain imports

India currently imposes import tariffs ranging from 45% to 56.5% on soybeans, making imports from the US economically unfeasible. These barriers restrict access to more affordable GM feed grains, which are widely available and competitively priced in global markets.

Ricky Thaper, Joint Secretary of the Poultry Federation of India, explained that “the industry faces repeated shortages of key feed grains, and allowing GM soy and corn imports could provide much-needed relief.” His remarks, made to Asian Agribiz, reflect growing concern among poultry producers.

Trade negotiations intensify

As India moves closer to a trade agreement with the United States, discussions around agricultural tariffs have become central to the negotiations. Several industry groups, including the Confederation of Indian Industry (CII), have urged the government to selectively allow imports of GM soy and corn to combat the “unprecedented rise in feed prices.”

Meanwhile, NITI Aayog, India’s premier policy think tank, has weighed in by recommending a strategic approach to tariff reduction. In a report released in June, the agency advocated for lower tariffs on feed grains, while continuing to protect domestic poultry and dairy products.

“India needs to be smart in negotiating reciprocal market access—open where we don’t compete, protect where we must,” the report said.

Opposition voices caution

However, the call to open India’s market to GM feed grains has met fierce resistance from sections of the farming community and trade experts. The Global Trade Research Initiative (GTRI), an independent policy consultancy, has warned that tariff cuts on GM agricultural imports could have long-term negative consequences.

GTRI analysts argue that once tariffs are lowered under the new deal, reversing them may be legally difficult, locking India into a system that could damage local production. They also highlight that GM grains from the US are often heavily subsidised, potentially making Indian farmers uncompetitive.

Critics have also raised concerns about biosafety and traceability, cautioning that existing veterinary and food safety regulations may not be sufficient to monitor and control GM feed once it enters the domestic market.

A turning point for India’s poultry sector

The outcome of these trade talks could reshape the landscape of India’s poultry and feed industries. While opening the market to GM feed grains may offer a lifeline to struggling producers, it also presents regulatory, environmental, and trade challenges.

As policymakers weigh the options, the debate underscores the need to balance economic pragmatism with long-term food and feed security, while maintaining public trust in agricultural policy.