India customs scrutiny diverts Niger soybeans to Asia at steep discounts, sources say

Around 11,000 metric tons of Niger soybeans intended for Indian buyers were diverted to Asian markets, including Vietnam, Indonesia and Bangladesh, at steep discounts after Indian customs authorities intensified scrutiny of imports declared as originating from Niger to prevent suspected tax evasion, according to trade sources. The soybeans were sold for between $470 and $510 per ton, compared to more than $650 per ton initially agreed by Indian buyers who refused to take delivery due to the increased scrutiny.

Indian customs is investigating the surge in soybean imports from Niger, suspecting they may have come from Nigeria and were mislabeled to evade tariffs, according to Reuters. India allows duty-free imports from least-developed countries like Niger, but authorities require importers to provide documents verifying the beans' origin for duty-free entry, leading to fears of paying the 45% duty if the verification fails.

Around 60 containers, or 1,500 tons, of soybeans remain stranded at the Jawaharlal Nehru Port near Mumbai due to customs scrutiny, causing port charges to rise as sellers strive to avoid losses and avoid paying import taxes. Niger's Chamber of Commerce and Industry has not commented on the situation. India permits only non-genetically modified soybeans, restricting supplies to a few African countries, including Benin, Nigeria, Togo and Niger, where non-GM beans fetch a premium over GM varieties.

African sellers are diverting shipments to Asian markets, where buyers usually purchase GM soybeans, forcing sellers to offer non-GM beans at discounts to match GM soybean prices.