Indian Soybean Industry Awaits Clarity on US Trade Pact's Tariff and Quota Details

The interim India-US trade agreement has sparked cautious optimism in the Indian soybean processing sector. While the pact includes tariff cuts and reduced duties, industry figures await specific details on quotas, GM product permissions, and cess exemptions to assess the agreement's full impact on costs and competition.

The announcement of an interim bilateral trade agreement between India and the United States has been met with cautious optimism within India's edible oil and soybean processing industry. Despite welcoming the reduction in tariffs and import duties, industry leaders are eagerly awaiting further details on crucial aspects such as tariff cuts, quota mechanisms, and quality specifications.

Under this agreement, the US will lower tariffs on Indian goods from 50% to 18%, while India will cut or eliminate duties on various American products, including soybean oil. The Solvent Extractors Association of India has acknowledged the potential benefits, given the country's considerable dependence on soybean oil imports, primarily from Argentina and Brazil.

However, industry experts like BV Mehta and DN Pathak highlight unresolved issues pertaining to cost advantages, quota allocations, and GM product permissions. These unresolved questions pose concerns for domestic producers. With details still forthcoming, the sector remains in a wait-and-watch mode as it assesses the potential changes to trade and distribution dynamics.