India’s soymeal exports to US plunge after levy of over 290% of anti-dumping and countervailing duty

Indian exporters’ failure to respond to an anti-dumping investigation initiated by the US International Trade Commission (ITC) in 2021-22 has resulted in soymeal exports from the country plunging by over  90 per cent in the past five years.

India was exporting non-genetically modified soymeal to the US, which was claimed to be organic. What began as a trickle in 2013-14 peaked in 2020-21 at 2.27 lakh tonnes. The subsequent probe and the ITA findings dragged the shipments that were pegged at 21,313 tonnes in 2024-25 by the Solvent Extractors Association of India (SEA).

The ITC probe began after the US Department of Commerce preliminarily determined that organic soybean meal from India was sold in the US at less than fair value (LTFV) between January 1, 2020, and December 31, 2020. The ITA called interested parties to comment on the preliminary investigations.

OSPA Allegations

“Barring one exporter, no other party responded to the notice from the ITA. As a result, the US imposed heavy anti-dumping and countervailing duties,” said DN Pathak, Executive Director, Soybean Processors Association of India.

“A local organisation in the US objected to Indian non-GM soymeal exports. Once the objection was raised, exports stopped,” said BV Mehta, Executive Director of SEA. 

With Indian soymeal imports hitting a record 2.26 lakh tonnes, the Organic Soybean Processors of America (OSPA), an industry trade group, filed a petition on March 31, 2021, with the US Department of Commerce (DOC) and the (ITC). It alleged that organic soymeal from India was being sold in the US at LTFV. 

Further, OSPA alleged that the Indian government was providing “unfair subsidies” to Indian producers and exporters of organic soymeal to the US. They claimed that the dumping margins were 154.12 per cent and the total level of subsidies was unspecified, exceeding 1 per cent.

Meal for special needs

OSPA petition identified 19 exporters and five US importers of OSM from India. In its final determination, made on May 9, 2022, the ITC imposed 18.80 per cent anti-dumping duty, which was adjusted to 9.26 per cent for export subsidy offsets. In addition, it imposed a whopping 283.91 per cent countervailing duty on Indian soymeal imports into the US. However, the ITC imposed zero anti-dumping duty and 9.57 per cent countervailing duty on the company that took part in the probe. 

 “Who would want to export organic soymeal at such a huge duty? So, the shipments dropped,” said Pathak. 

Industry sources said no efforts were made to export soymeal to the US after the ITC ruling. “We are a little weak when it comes to claiming our products are organic. Probably, that’s why most companies did not take part in the ITC probe,” said an industry source. 

While the OSPA petition said Indian soymeal imports were organic, industry sources said the US imported Indian soymeal to meet Washington’s needs for special applications, as 95 per cent of the soybean crop there was GM. 

Higher oil content

Initially, the US was buying non-GM soybean from India before it turned to soymeal. Industry sources said the soymeal exported to the US had a higher oil content of 5-6 per cent compared with the normal one per cent. The soymeal was used as chicken feed as it was non-GM. 

In 2020-21, the US was the fourth-largest market for Indian soymeal. Then, the shipments were aided by a five per cent Merchandise Exports from India Scheme (MEIS). This was mainly to help move the product to the ports from the hinterland. 

In 2024-25, India exported 21.28 lakh tonnes of soymeal, valued at ₹7,630 crore, compared with the record 21.33 lakh tonnes shipped in 2023-23 valued at ₹9,448 crore. 

The US Department of Commerce also reviewed its decision based on shipments between May 1, 2023, and April 30, 2024. It found the dumping margin of 18.8 per cent continuing in the case of the Indian firm, Tejawat, during its review of the case. 

Published on September 2, 2025