Biotech vs Biodiversity: The GM Trade-Off Between India and the US

As the clock ticks towards July 9, the Indian agriculture sector, MSMEs, and trade are in a state of bewilderment regarding the outcome of the India-US trade negotiations. On the one hand, the United States is striving to open its genetically modified (GM) crop agricultural market to India. On the Other hand, India is looking for better opportunities to expand its textile, leather, and footwear to the US market. With respect to GM crops, Finance Minister Nirmala Sitharaman raised concerns, warning that accepting GM imports could jeopardise both farmers' livelihoods and food safety. She even declared agriculture and dairy as sacrosanct and their "red Lines."

GM in India

The Indian ‘Rules of 1989’ [Rules for the Manufacture/Use/Import/Export and Storage of Hazardous Microorganisms/ Genetically Engineered Organisms or Cells, 1989] under the Environment (Protection) Act, 1986, describe GMOs as “hazardous”. 

The world has experienced a skyrocketed GM crop adoption since 1996. As of 2023, over 200 million hectares of GM crops have been cultivated across 76 countries. 

The only crop that is GM in India is cotton. Atal Bihari Vajpayee's government in 2002 decided to allow Bt cotton.

Cotton production in India witnessed a remarkable rise, climbing from 13.6 million bales in 2002–03 to 39.8 million bales by 2013–14—a staggering 193% increase. During the same period, yield per hectare surged by 87%, growing from 302 kg/ha to 566 kg/ha, while the total area under cultivation expanded by 56%.

Soon India became the world's second-largest cotton producer after China and the second-largest exporter after the US, hitting $4.1 billion in net exports during 2011-12.

But the story changed in 2015, the yield has slumped from 566 kg/ha in 2013-14 to 436 kg/ha in 2023-24, which is far below the global average of approximately 770 kg/ha. In the race, China is nearly 1,945 kg/ha, and Brazil's is around 1,839 kg/ha. And by 2024-25, India turned into an importer of raw cotton, with net imports valued at $0.4 billion.

Arguments in Favour of GM Crops

India, with its increasing population and shrinking arable land, must tap into advanced agricultural technologies to ensure food security. Proponents of genetically modified (GM) crops, such as those quoted in The Indian Express article, argue that embracing biotechnology is not a luxury but a necessity.

India's farm productivity lags behind global standards. Despite being among the largest producers of several crops, India remains a net importer of crucial food commodities like edible oils and pulses. The solution, some suggest, lies in genetic innovation. According to the Indian Express piece, global trends clearly indicate that countries investing in GM technology have seen significant gains in crop yields, reduced pesticide use, and better resilience against pests and climate variability.

Biotechnology, they argue, can be an equaliser—enabling farmers with limited land and resources to grow higher-yielding, disease-resistant crops. HT (herbicide-tolerant) crops, for instance, can ease labour demands by controlling weeds more efficiently, while Bt crops are designed to resist pests, thereby reducing dependence on chemical pesticides. With India importing nearly 70% of its edible oil demand (up from 3% in 1993), GM mustard is being positioned as a strategic solution to reduce this costly dependency.

Arguments Opposing GM Crops

However, as outlined in the extensive critique published in The Wire, India’s experience with GM crops—particularly Bt cotton—tells a cautionary tale. Introduced in 2002, Bt cotton is the only commercially cultivated GM crop in India. While initially promising, long-term outcomes have been disappointing. Pest resistance has grown, with pink bollworms developing immunity to Bollgard-II, leading to increased insecticide usage, reversing one of the original benefits. Yield stagnation increased input costs, and high seed prices have led to farmer distress, even contributing to suicides in cotton-growing belts.

Hybrid Bt cotton disallows seed saving, forcing farmers to buy new seeds annually. From 2002 to 2018, Indian farmers paid an estimated Rs 14,000 crore for Bt cotton seeds, with Rs 7,337 crore as trait fees (an amount paid to developers of the seeds for using their technology) paid to Mahyco Monsanto Biotech Ltd (MMBL).

The proposed commercialisation of GM HT mustard has drawn severe criticism. Experts argue that HT mustard offers no yield advantage over existing non-GMO hybrids and violates environmental safety norms. Mustard, being a centre of diversity in India, is at risk of genetic contamination through cross-pollination. The Supreme Court-appointed Technical Expert Committee (TEC) has advised a ban on GM mustard, citing ecological concerns and India's rich biodiversity.

Corporatisation of Seeds

An equally pressing concern is how GM crops can become tools for corporate monopolisation. The Wire's investigative report reveals how U.S.-based PR firms and agrochemical giants, such as Monsanto, have influenced global GMO narratives while profiling and discrediting scientists and activists who oppose GMOs.

Monsanto now merged with Bayer, has historically leveraged its intellectual property over genetically engineered seeds to control pricing and access. In India, Bt cotton’s rollout resulted in MMBL (a Monsanto joint venture) gaining a near-monopoly over the seed market. Their high royalty fees made seeds unaffordable, causing what even the Union Government admitted was a “market failure.”

If India, under trade pressure from the U.S., greenlights GM crops in future trade deals, the ramifications for Indian agriculture and MSMEs would be seismic. The entry of patented seeds would:

• Undermine indigenous seed diversity maintained by local farmers and small seed companies.

• Causes economic displacement for MSMEs engaged in traditional seed production, organic inputs, and agroecological methods.

• Increase dependence on foreign corporations for annual seed supply, herbicides, and technical inputs.

• Severely threaten India’s seed sovereignty and long-term food security.

Already, India imports nearly 70% of its edible oil due to liberalised import policies since the 1990s. Any further dependency, now at the genetic level, would leave Indian agriculture dangerously vulnerable.

The Way Forward

India is one of 17 listed international hotspots of diversity, which includes mustard, brinjal and rice. India is the centre of the world’s biological diversity in brinjal, with over 2,500 varieties grown in the country and as many as 29 wild species. India must weigh the promise of biotechnology against its socio-economic and ecological costs. For Indian MSMEs and farmers to thrive, innovation must walk hand-in-hand with autonomy, and not be led by the invisible hand of monopolies.

However, it would be shortsighted to dismiss genetic modification entirely. With proper safeguards, public sector-led research, and farmer-centric deployment, GM technology can be harnessed as a tool for inclusive agricultural transformation. India must craft its own GMO pathway—one that enhances productivity without compromising biodiversity and empowers farmers without enriching monopolies. With the right policy architecture and scientific rigour, GM crops can indeed become a pillar of India's food security strategy.