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India-US BTA Talks Throw Up Tricky Farm Riddles to Solve

Business Standard

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July 07, 2025

Any decision on granting access to maize from the US may send the ruling JD(U)-BJP-led coalition back to the drawing board in poll-bound Bihar, writes Sanjeeb Mukherjee

As the India-United States (US) Bilateral Trade Agreement (BTA) negotiations enter a crucial phase, the fate of three key agricultural commodities—maize, soybean, and soyoil—would be keenly watched.

According to sources, the US boasts of huge surpluses of all three commodities and is pushing to ease entry barriers as part of the deal. If the US has its way, it could have repercussions for farmers in Madhya Pradesh, Maharashtra, Telangana, and Andhra Pradesh. But, the most immediate impact could be in Bihar, which goes to polls later this year.

Why maize is a big deal in Bihar As of 2024-25 (July to June crop year), maize was grown in around 12 million hectares and soybean in around 13 million hectares across India. Maize is largely cultivated in central and northeastern Bihar—Saharsa, Kishanganj, Khagaria, Araria, and Purnea districts—also known as the Seemanchal region.

Chief Minister Nitish Kumar's Janata Dal (United) and Tejashwi Yadav's Rashtriya Janata Dal (RJD) have held sway over Seemanchal. The JD(U) won most of the seats in Seemanchal in the 2020 Assembly elections. Observers, however, attribute this to the entry of Asaduddin Owaisi-led All India Majlis-e-Ittehadul Muslimeen (AIMIM) that possibly dented RJD's prospects.

Any uncontrolled import of maize, in case the US gets access to the domestic market, could have political ramifications for the JD(U)-BJP-led ruling coalition, say experts.

Key to ethanol blending Maize, integral to Bihar's agro-economy, is India's third-most widely-produced cereal after wheat and rice. Assembly polls are due in Bihar in October-November. This almost coincides with the kharif maize harvesting period in the state as well.

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