US trade deal puts heavy pressure on cotton and soybean markets

16-Feb-2026 01:36 PM

Nagpur. Following the trade deal with the United States, cotton and soybean prices in the domestic market have been under significant pressure. Soybean and cotton are produced extensively in the Vidarbha region of Maharashtra, and farmers expect good returns from these two important crops. Interestingly, the bilateral trade agreement has not yet been properly implemented, nor has the import of US products begun, yet this trade agreement is already having a profound psychological impact on the Indian market.

The draft trade agreement allows duty-free, unlimited imports of extra-long-staple cotton and limited imports of DDGS from the US. Imports of soybean oil have also been reduced. This is likely to negatively impact the prices of cotton, soymeal, soybeans, and corn in the domestic market.

The price of long-staple cotton in the open market has fallen from ₹7,200 to ₹6,700 per quintal, well below the government support price of ₹8,110 per quintal. Similarly, the price of soybean has fallen below ₹5,000 per quintal, and in some places, it is between ₹4,200 and ₹4,500 per quintal, well below the minimum support price (MSP) of ₹5,328 per quintal. The plant delivery price is slightly higher.

A farmers' organization says that domestic market prices of soybean and cotton have begun to fall due to the trade deal. The recent ups and downs in prices due to the off-season supply season have now turned into a softening trend.

A press release from the organization states that the opening of imports of maize-derived DDGS has led to a decline in prices of soybean and its products. The domestic supply of DDGS is already adequate, and there is no need to import it from abroad.