The Organic Soybean Processors of America has filed a petition with the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (ITC) to investigate their allegation that organic soybean meal produced in India and sold in the U.S. is being sold at less than fair market value.

India is the largest producer of organic soybean products sold to the U.S. By some estimates, Indian manufacturers supplied over 40% of the total organic soybean meal in the U.S. in 2019 and 2020. The consortium of U.S. companies and organizations that are participating in this petition include meal manufacturers that import soybeans from India and then process them into meals at crushing facilities in the U.S. The petition does not question the price points of India made soybeans and is singularly targeting the meal product crushed in India.

The petition further alleges that the Indian government is providing unfair subsidies to producers and exporters in India. The ITC is set to rule by May 17, 2021, on whether or not these imports are damaging the U.S. industry. If the ITC finds just cause, then the DOC will determine the countervailing duty margins—for unfair subsidies—by June 24 and antidumping duty margins by September 7.

If this petition goes through it will have far reaching implications on one of India’s major exports to the U.S. If U.S. buyers choose to source their organic meals from other countries, tens of thousands of Indian farmers and workers could be displaced, and the price of soybean meal may increase for U.S. importers and farmerswho use the meal as animal feed. In the meantime, many are anxiously awaiting ITC’s ruling.

If you have questions regarding imports and compliance matters related to the organic soybean meal industry, reach out to Shaun.