Helping exports. Govt should cut import duty on food-grade soybean for soy food export: SFPWA

The government has been urged by an industry body to cut import duty on soybean from the current 45 percent to 10-20 percent so that food specialty soybean gets imported by processors, potentially helping them to export processed products to southeast Asian countries.

After a conference on “Soy Foods: Sustainable Protein for Health and Wellness” in Indore, the organiser Soy Food Promotion and Welfare Association (SFPWA) released a charter of recommendations which include import duty reduction.

Earlier, the import duty was 30 per cent on soybean, which was raised to 45 per cent two years back, said Ratan Sharma, country director of the US Soybean Export Council. He said that food-grade soybean, grown in US and Canada, can be allowed at reduced duty as raw material to help processors export soy food items.

He added that soybean, grown in India, is mainly used for extracting edible oil and for food products. However, due to agroclimatic conditions in US and Canada, there are specific varieties of soybean that are preferred by processors in China and south east Asian countries to manufacture food products, he said.

If the raw material is available cheaper, India can certainly compete in those markets, he added.

Recognising the potential of the soy food industry, the conference participants put forth a series of recommendations urging government support to foster growth, innovation, and entrepreneurship within the sector, said Sumit Agarwal, chairman of SFPWA.

Among other recommendations, the industry body said there should be quality standards for soy food products and appropriate nomenclature, setting clear guidelines. It has also demanded its nominee as a member of standards committees for soy foods. Further, the Food Safety and Standards Authority of India (FSSAI) should identify and rectify any discrepancies or gaps in the existing tofu standards.

It has sought inclusion of soy protein ingredients in the Production-Linked Incentive (PLI) scheme to incentivise their use in various food manufacturing processes.

Sharma said these recommendations have the potential to foster entrepreneurship and promote healthier diets in India.