US-China Trade War: India's soybean farmers eye golden opportunity

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02:15

The humble soybean is quickly emerging as a major focal point in the ongoing US-China trade war. And with its ample agricultural capacity and close proximity to major markets, India is well-positioned to take full advantage of the current landscape. But before India gets rolling as a soybean export powerhouse, there are still many hurdles ahead. Ravinder Bawa in Delhi explains.

Soya bean growers in India are looking at trade tensions between China and the United States as a golden opportunity. Since China has clamped 25 percent duty on soya bean from the US, Indian has been pressurizing China to withdraw the quarantine ban and open up the market for more products.

D. N. PATHAK, EXECUTIVE DIRECTOR SOYABEAN PROCESSORS ASSOCIATION, DELHI "Market access is already there. Quarantine ban is the only thing that should be lifted. Our government has already given the document to the Chinese government. It is now for the Chinese government to agree that there is no problem for soybeans exporting from India. Once they lifted the ban, we are all set to go."

Even though India does not have an exportable surplus yet, Indian industry players anticipate exports of 100 million US dollars worth of soybean meal. Currently, there are no soybean oil and soybean flour exports and negligible oil cake exports from India to China. India faces tough competition from Latin American countries.

AJAY SAHAI, DIRECTOR GENERAL FEDERATION OF INDIAN EXPORTS ORGANISATION, DELHI "The major supply beside the US has been the Latin American countries led by Brazil and Argentina. They have the current advantage for them. So even if the market access is given to India, first of all, I am not sure how much volume will be there for exports."

India is also expecting a bumper crop of soybean this year. A delegation of the Soybean Processors Association (SOPA) of India is expected to visit China next month. They want to assuage Chinese quarantine concerns and ensure market availability for Indian soybean exporters.