India has recently made a significant policy change regarding ethanol production, aiming to meet its blending targets. For two years, the country increased ethanol output from grains, particularly maize. This led to high demand and pressure on maize supplies, causing complaints from poultry, starch, and ethanol industries due to soaring domestic prices and a drop in exports. By 2024, India even became a net importer of maize, sourcing about a million tonnes mainly from Myanmar and Ukraine.
Some industry voices have suggested allowing duty-free imports of genetically modified (GM) maize to fill the supply gap. However, this move is seen as potentially harmful to India’s long-term interests. Advocates for non-GM crops warn that GM imports could contaminate local non-GM seeds, weaken India’s non-GM certification system, and block access to lucrative markets in Europe, Asia, and the Middle East that pay extra for non-GM maize.
A major policy shift occurred on September 1, 2025. The Indian government removed limits on producing ethanol from sugarcane juice, sugar syrup, and all forms of molasses for the Ethanol Supply Year 2025-26. This change, effective from November 1, reverses the restrictions imposed the previous year when sugarcane supplies were low. It allows sugar mills more flexibility to produce ethanol from cane, supporting India’s goal of achieving E20 (20% ethanol blending) by 2025-26.
This decision has been welcomed by industry leaders, who see it as a significant opportunity for sugarcane farmers and a boost for distilleries. More importantly, this policy change could ease the current strain on maize supplies. It may help India protect its strong position as a producer of non-GM maize. By shifting feedstock away from maize, the move can help calm feed markets and address the concerns of the poultry sector regarding high corn prices.
This presents a timely opportunity for India to promote a productive, profitable, and export-friendly non-GM maize sector without needing to adopt GM crops. While the Genetic Engineering Approval Committee (GEAC) has approved limited field trials of GM maize at some research locations, these are strictly for research and not for commercial farming. States still hold the power to grant permissions, and GM maize is not yet allowed for farmers in India. Even these research trials highlight the need for strict measures to prevent accidental contamination, such as robust biosafety rules and isolation distances.
Existing regulations, like the Food Safety and Standards Authority of India’s (FSSAI) non-GM certification, are crucial for maintaining access to export markets that have restrictions on GM crops. India has generally favoured limited tariff-rate quotas (TRQs) and temporary concessions on non-GM corn imports over opening the door to GM maize. Protecting India’s non-GM identity is not just an ethical stance but also a smart trade strategy, as global demand for non-GM products grows.
A strong non-GM system, backed by thorough testing and traceability, builds trust with both domestic consumers and international buyers. It also helps India avoid the legal challenges that GM crops have faced elsewhere. Experts agree that India needs a clear, science-based crop policy.
As E20 blending expands, India must firmly protect its non-GM certification system, which serves as a valuable tool in trade negotiations and a guarantee for premium buyers. To make this policy sustainable, collaboration between the government, industry, and farmer groups is essential. The government should prioritise cane-based ethanol during good cane harvests and use surplus rice judiciously when needed, while also maintaining flexible procurement prices to prevent sudden shifts back to maize.
Efforts to develop and distribute high-yielding non-GM hybrids suitable for different regions need to be accelerated. Community-level monitoring and improved pest control measures are also vital. If maize shortages reappear, the government should consider short-term imports of non-GM corn through TRQs instead of opening the door to GM imports. To support users of maize like the poultry and starch industries, a public dashboard for maize diversion and financial tools like hedging and storage credit could help manage price volatility.
Transparency in GM trial governance, including public access to trial locations, buffer zones, and publication of results, is paramount. Until a clear science-policy consensus is reached, GM trials should remain at the research level. While GM crops offer potential benefits, factors like seed quality and farming practices are crucial in India. Non-GM hybrids can significantly improve yields without the risks associated with GM crops.
Maintaining a non-GM identity helps India avoid trade barriers and legal issues. The current policy shift towards cane-based ethanol provides a valuable window of opportunity. It reduces pressure on maize, allowing India to build a robust, high-yield non-GM maize sector. This can ensure food security, support key industries, and strengthen India’s position in global markets, turning a small policy adjustment into a significant strategic advantage.