New York: The skirmishes between India and the US over trade will likely see the Americans are paying more for organic eggs soon as the US has reportedly begun an investigation into an allegation that India is dumping and subsidizing organic soy meal used to feed chickens in the US, thus harming American companies.
The US sources about 40% of organic soy meal for its domestic usage from India, according to a Bloomberg report. The likely rise of tariff on organic soy meal import from India is the result of the ongoing probe which has already created a crunch in the market, inflating the prices of poultry products, including eggs.
The Bloomberg report also noted the Americans are being ruffled by the higher prices for organic eggs at a time when conventional eggs are also rising on increased retail demand. The price surge in the organic soy meal market is said to be a matter of concern given the higher inflation that is experienced across the globe as the after-effects of the pandemic.
Organic soybeans for feed in the U.S. reached $29.92 a bushel on Friday, up 47% from a year ago. Along with the trade tensions, pandemic-related shipping disruptions are contributing to the price spike.