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Economic think tank GTRI on Saturday cautioned that allowing genetically modified (GM) farm products from the US under the proposed trade pact would have implications for India as it may affect the country's agri exports to regions like the European Union.

India and the US are negotiating an interim trade pact, which is expected to be announced before July 9.

The Global Trade Research Initiative (GTRI) said that allowing the import of GM products such as soybean meal and distillers dried grains with solubles (DDGS) for animal feed would affect India's agricultural exports to the European Union (EU), a key destination for Indian exporters.

DDGS is a by-product made during ethanol production, usually from corn or other grains.

The EU has strict GM labelling rules and strong consumer resistance to GM-linked products. Even though GM feed is permitted, many European buyers prefer fully GM-free supply chains.

India's fragmented agri-logistics and lack of segregation infrastructure make cross-contamination likely, risking trace GM presence in export consignments, GTRI Founder Ajay Srivastava said.

"This could lead to shipment rejections, higher testing costs, and erosion of India's GMO-free image, especially in sensitive sectors like rice, tea, honey, spices, and organic foods. Without robust traceability and labeling systems, GM feed imports could hurt India's export competitiveness in the EU," he said.

Genetically modified crops are created by inserting specific genes, often from bacteria, viruses, other plants, or occasionally animals, into a plant's DNA to introduce new traits, such as pest resistance or herbicide tolerance.

For instance, the BT gene from the bacterium Bacillus Thuringiensis enables the plant to produce a protein toxic to certain pests. Other genes, including those from soil bacteria, have been used to make crops resistant to herbicides, he said.

He added that while GM crops are biologically plant-based and function as vegetarian food, the fact that some contain genes of animal origin means they may not be acceptable to communities or individuals that adhere strictly to religious or ethical definitions of vegetarianism.

Srivastava further said research suggests that GM DNA is broken down during digestion and does not enter the animal's meat, milk, or produce.

"Therefore, foods like milk or chicken are not classified as GM, even if the animals were fed GM feed. However, critics argue that this blurs the line for consumers who wish to avoid GM-associated products entirely," he said.

On whether seeds harvested from genetically modified crops be reused for future sowing, he said GM seeds are generally not reusable due to legal and biological reasons.

"They are patented and sold under contracts that prohibit saving and replanting. Even if reused, many GM crops are hybrids, and their saved seeds often perform poorly. In India, Bt cotton is the only approved GM crop, and while farmers have tried reusing its seeds, results are substandard," he said.

Further, he said the risk of contamination remains a concern worldwide.

Srivastava said that GM and non-GM crops can intermingle at various points in the supply chain, especially during transport, storage, or processing.

He added that in India, the current policy is relatively conservative and only one GM crop - Bt cotton - is approved for cultivation.

"No GM food crop is commercially cultivated, although experimental trials are ongoing. Import of GM soybean oil and canola oil are permitted," the GTRI said adding imports of GM grains, pulses, oilseeds, fruits, and similar food/feed products are not allowed.

GM feed materials such as soybean meal and DDGS are currently banned.