Maize and soybean prices soften after trade agreement with the US

12-Feb-2026 04:53 PM

Mumbai. The Indian government's approval of duty-free imports of American soybean oil and protein-rich and animal feed (DDGS) under the Indo-US trade deal is beginning to impact soybean, soymeal, and maize prices in the domestic market.

The possibility of large and cheap imports of these products from the US is fueling market sentiment. Farmers' organizations and opposition parties are strongly opposing this trade agreement.

Last week, a joint statement issued by India and the US stated that India had agreed to allow duty-free imports of American soybean oil and distillers' dried grains with solubles (DDGS). Since the announcement of this interim framework, soybean prices have fallen by 10 percent and maize prices by 4 percent in the domestic market.

This is likely to increase concern and anger among millions of small Indian farmers. It is worth noting that the government was forced to roll back agricultural reforms during 2020-21 due to massive farmer protests.

Opposition parties are calling this bilateral agreement detrimental to the Indian agricultural sector, arguing that it was signed on American terms. Allowing the import of soy oil instead of GM soybeans and DDGS instead of GM maize could prove disastrous for India.

Furthermore, the rapid increase in cheap imports of many other agricultural products, including red sorghum, fruits, and nuts, will weaken the Indian market, forcing local farmers to struggle to obtain profitable prices for their produce. The price of maize has fallen to ₹1,820 per quintal, well below the MSP.