Implications of mandatory labeling of GM food in India: Evidence from the supply side

We assess the supply-side economic implications of introducing a strict mandatory labeling policy for genetically modified (GM) food in India as proposed in 2006. We apply our analysis to the case of cottonseed oil and soybean oil, two products that would be the first affected by such regulation. We find that GM food labeling would generate adjustment and implementation costs and consumer benefits would not always be visible and would highly depend on the degree of enforcement.