Labelling of genetically modified foods is a contentious issue and internationally there is sharp division on whether such labels ought to be mandatory. This debate has reached India where the government has proposed mandatory labels. Mandatory labelling aims to provide greater information and correspondingly more informed consumer choice.

In 2006, India proposed a draft rule requiring the labeling of all genetically modified (GM) foods and products derived thereof. This paper assesses the economic implications of introducing such a mandatory labeling policy for GM food. Focuses on four products that would likely be the first affected by such a regulation in India: cottonseed oil, soybean oil, brinjal (eggplant), and rice.