India Customs Probe Diverts Niger Soybeans to Asian Markets at Steep Discounts
Around 11,000 metric tons of soybeans originally bound for India have been diverted to Vietnam, Indonesia and Bangladesh amid increased customs scrutiny over suspected import duty evasion, according to trade sources cited by Reuters. The shipments were reportedly sold for $470 to $510 per ton, significantly below the more than $650 per ton agreed with Indian buyers, who refused to accept delivery.
Indian customs authorities are investigating a sharp increase in soybean imports declared as originating in Niger, suspecting that some shipments may have come from Nigeria and been mislabelled to avoid import duties. India permits duty-free imports from least-developed countries such as Niger, but importers may face a 45% duty if they cannot establish the goods’ origin. Meanwhile, around 60 containers containing 1,500 metric tons of soybeans remain stranded at Jawaharlal Nehru Port near Mumbai.
The investigation has disrupted trade as India, which imported a record one million metric tons of soybeans this year following a poor harvest, allows imports only of non-genetically modified soybeans. Sellers redirecting their shipments to Asian markets face lower prices because buyers there typically purchase genetically modified varieties. Rising freight costs and the risk of port storage penalties have further pressured exporters to sell at discounts rather than risk additional losses.
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