US antidumping inquiry finds unfair subsidies given to Indian producers and exporters of organic soybean meal

By Jane Byrne contact

- Last updated on GMT

© GettyImages/designer491
© GettyImages/designer491

Related tags: organic soybean meal, India, antidumping

Organic soybean meal from India could be facing duties as high as 266% after the US Department of Commerce (DOC) determined that the goods have been unfairly subsidized by the Indian government.

In March 2021, the Organic Soybean Processors of America filed a petition with the US Department of Commerce (DOC) and the US International Trade Commission (ITC) alleging that organic soybean meal (OSM) from India was being sold in the US at less than fair value, in other words, dumped.

The petitioners alleged that imports of such products were materially injuring, or threatening material injury to the organic soybean meal industry in the US. They called for antidumping (AD) and countervailing duties (CVD) on imports of OSM from India.

The DOC initiated its probe in late April 2021, and, the following month, the ITC found​ that there was reasonable indication the US industry was materially injured by reason of imports of OSM from India allegedly subsidized and sold in the US at less than fair value. That decision gave the green light for the DOC to continue its investigation

In the official notice published​ on August 30, the DOC said that it "preliminarily determines that countervailable subsidies are being provided to producers and exporters of organic soybean meal from India. The period of investigation is January 1, 2020, through December 31, 2020."

And it confirmed that it is aligning the determination of the final countervailing duty (CVD) and the companion antidumping duty (AD) of OSM from India based on a request made by the petitioners.

"Consequently, the final CVD determination will be issued on the same date as the final AD determination, which is currently scheduled to be issued no later than January 10, 2022, unless postponed,"​ added the US agency. 

US antidumping inquiries 

Under US law, a domestic industry can petition the government to initiate an AD probe to determine whether an imported product is sold in the US at less than fair value. A domestic industry may also seek a CVD investigation into alleged subsidization of foreign producers or exporters by a foreign government.

AD/CVD duties may be imposed if the DOC determines that imported goods are dumped and/or unfairly subsidized and if the ITC determines that the domestic industry is materially injured or threatened with such injury by reason of the subject imports.

Along with the Organic Soybean Processors of America, the petitioners in this case include seven US processors: American Natural Processors, LLC (Dakota Dunes, SD), Organic Production Services, LLC (Weldon, NC), Professional Proteins Ltd. (Washington, IA), Sheppard Grain Enterprises, LLC (Phelps, NY), Simmons Grain Co. (Salem, OH), Super Soy, LLC (Brodhead, WI), and Tri-State Crush (Syracuse, IN).

Feed ingredient for organic poultry and dairy

OSM is primarily used as an animal feed ingredient for organic poultry and dairy in the US with a nominal amount used for other organic US livestock farming operations such as pork. OSM attracts a premium compared to conventional soybean meal; it can consist of ground soybean cake, ground soybean chips, and/or ground soybean flakes, with or without oil residues. 

India is by far the largest supplier of organic soy products to US markets, according to Ryan Koory, director of economics for Mercaris. “We estimate that they provided 42% of total US organic soybean and meal supplies over the 2019-20 marketing year. To put this bluntly, organic soy imports from India over 2019-20 were nearly double US production during that same period,”​ reported World Grain​ in February this year.

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