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Informist, Monday, Mar. 10, 2025

MUMBAI  –  The Soybean Processors Association of India has urged the Indian government to retain the existing import duties on soyoil, soybean and soymeal while strengthening the India's trade relations with the US through the proposed India-US Bilateral Trade Agreement, said the association in a letter addressed to Union Minister Of Commerce and Industry Piyush Goyal. 

The country's soybean productivity remains significantly lower than that of the US, where genetically modified crops yield around 3 tonnes per hectare compared to India's average of 1.2 tonnes per hectare where crops are non-genetically modified. Given this disparity, SOPA has strongly recommended that the government retain existing import duties on soybean products to prevent a flood of low-cost imports, which could undermine domestic production and adversely impact millions of farmers.

SOPA also highlighted the importance of achieving self-sufficiency in edible oils, noting that India already depends on imports for over 60% of its edible oil needs. Allowing concessional duty imports of soybeans would further hinder efforts to strengthen the domestic sector.

Additionally, the association urged the government to focus on value-added soy products such as soy protein, which would not directly compete with raw soybean markets but could drive innovation and expansion in India's food processing sector.

A key concern raised by SOPA is the imposition of 283.91% countervailing duty by the US on imports of Indian organic soymeal, a sharp increase from the earlier 12-15% rate. This move has significantly affected the competitiveness of Indian exporters in the US market. Therefore, the association has called on the government to prioritise negotiations to ensure fairer market access for Indian soymeal into US markets. 

SOPA highlighted in the letter that opening up agricultural imports at concessional duties could weaken India's domestic agriculture, particularly for products we produce in abundance in the country. 

While acknowledging the significant opportunities that the India-US trade deal presents, SOPA stressed upon the importance of ensuring that Indian farmers and the edible oil industry are not disadvantaged. The association believes a balanced and mutually beneficial agreement will foster sustainable growth in India's agricultural sector and strengthen bilateral trade relations.  End

Reported by Anjali Lavania

Edited by Deepshikha Bhardwaj 

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