The Soyabean Processors Association of India (SOPA) has made a strong appeal to the government to maintain the current import duties on soyabean and its products in the proposed India-US bilateral trade agreement.
Any reduction in duties would result in influx of low-cost imports from the US, hurting the livelihoods of over 10 million farmers and associated industries, SOPA Chairman Davish Jain said in a letter to the Commerce Minister.
India stands among the top five global producers of soyabeans, with an estimated production of approximately 13 million tonnes in the 2023-24 fiscal year. This domestic output caters not only to internal consumption but also enables the export of surplus soyabean meal.
Import duty
On the other hand, the US — a major producer and exporter of soyabeans and its products — has a significantly higher productivity levels — approximately 3 tonnes per hectare, (primarily because of it being a genetically modified crop) as compared to India’s average yield of 1.2 tonnes per hectare (exclusively non-GM).
“We strongly urge the government to retain the existing import duties on soyabeans, soyabean oil, and soyabean meal. Reducing these duties could result in an influx of low-cost imports, which would undermine India’s domestic soyabean production. Such a move would affect the livelihoods of about 10 million soyabean farmers and associated industries, further exacerbating the challenges faced by India’s agricultural sector,” Jain said.
Bilateral trade agreement
Besides, permitting the import of agricultural products, particularly soyabeans, where our productivity is much lower than the US, at concessional duty, (which currently is already about half the WTO bound rates) would be a significant setback to our goal of achieving self-sufficiency in edible oils, a sector where we already depend on imports to the extent of over 60 per cent. This would also not help the ultimate objective of National Mission on Edible Oils (Oilseeds).
“We recommend that both the nations explore concessional duty arrangements for value-added soya products such as soya protein isolates and concentrates. These products would not directly compete with raw soyabean markets and could drive innovation and expansion in India’s food processing sector, benefiting both countries. By focusing on value-added products, we can enhance the economic value derived from our soybean production and promote sustainable growth in the sector. It will also address the wide spread protein deficiency in the country,” Jain said.
The US has imposed a countervailing duty of 283.91 per cent on imports of organic soyabean meal from India, a sharp increase from the earlier rate of 12-15 per cent. This has significantly hindered the competitiveness of Indian exporters in the US market.
“While the India-US bilateral trade agreement presents substantial opportunities, we urge the government to ensure that the concerns and interests of India’s soyabean and edible oil sectors are addressed. We are confident that these considerations will contribute to a balanced and mutually beneficial agreement, fostering sustainable growth in India’s agricultural sector,” Jain said.