India’s soymeal exports might face a challenge due to a new deal between the United States and Bangladesh. The US has agreed to sell $1 billion worth of soybeans to Bangladesh. This news has worried Indian exporters, who have already seen a drop in sales.
Bangladesh has always been a big buyer of Indian soymeal. However, in the last year (2024-25), India exported only 1.63 lakh tonnes of soymeal to Bangladesh. This is much less than the 3.02 lakh tonnes exported the year before, a decrease of 46 per cent.
Mr. D.N. Pathak, Executive Director of the Soybean Processors Association of India (SOPA), explained the situation. He said, “Bangladesh is importing a lot of soybean at cheap prices from the US.” He added that the recent $1 billion contract with the US means Bangladesh will likely buy less from India. This is a significant concern for Indian exporters.
The US Embassy in Dhaka announced that three major soy-crushing companies in Bangladesh will buy $1 billion of US soybeans over the next year. This deal is important for the US because China, a major buyer, has stopped buying US soybeans due to trade disputes. Even though China is lifting some tariffs, they are still keeping a 13 per cent duty on US soybeans, making them more expensive than supplies from South America.
This situation could negatively affect Indian soymeal exports in the coming year. Mr. Pathak commented on the future, saying, “The export outlook right now doesn’t look very good.” He mentioned that it’s hard to predict the exact amount that can be exported. He added, “It all depends on how global prices behave. If prices rise further, we may turn competitive.”
Indian soymeal is usually more expensive in the global market because it is non-genetically modified (non-GM). It often costs about $100 per tonne more than GM soymeal. Overall, Indian soymeal shipments dropped by 5 per cent to 20.23 lakh tonnes in the 2024-25 oil year, compared to 21.28 lakh tonnes the previous year. This fall was mainly due to less demand from countries like Iran and Bangladesh.
However, strong demand from European countries helped to balance out the decrease in exports. Buyers in Germany, France, and the Netherlands increased their purchases. This was partly because they wanted to buy before new European Union Deforestation Regulation (EUDR) norms came into effect. Exports to Germany increased significantly, from 1.04 lakh tonnes to over 4.10 lakh tonnes. Shipments to France also tripled, and those to the Netherlands more than doubled.
Mr. Pathak also pointed out that problems with payments and sanctions have made trade with Iran difficult. Exporters are hesitant to take risks when dealing with Iran under the current circumstances.
Despite these challenges, the Indian soymeal industry is preparing to meet the new EUDR requirements. “We are working very hard on several aspects,” said Mr. Pathak. He expressed confidence that India can comply with EUDR and continue exporting. He also mentioned that the government of Madhya Pradesh is providing significant help in meeting these new regulations.