Organic eggs may get costlier in US amid trade dispute with India

Representative image

The trade dispute between India and the United States over the supply and sale of organic soy meal could force Americans to shell out more bucks for organic eggs.

The Organic Soybean Processors of America had earlier complained to the US Department of Commerce (DOC) and the US International Trade Commission (ITC) alleging that organic soybean meal from India is being sold in the US at less than fair value.

The trade group had called for antidumping and countervailing duties on imports from India.

The US ITC is currently probing the allegations made by Organic Soybean Processors of America.

In the preliminary investigation, the Department of Commerce recently determined that countervailable subsidies are being provided to producers and exporters of organic soybean meal from India.

The outcome of the investigation will likely result in "significant tariffs" said Ryan Koory, director of economics for Mercaris, which tracks organic markets.

This, in turn, has spooked merchandisers, who are hoarding soy meal as a response, thereby causing tight supplies and a surge in prices, Bloomberg reported.

The surge in prices of organic soy meal could result in increased cost of organic eggs.

Even organic meat and dairy could become pricier, the report said.

John Brunnquell, head of Egg Innovations, one of the biggest US producers of free-range eggs, told Bloomberg that the average industry cost to produce a dozen organic eggs has shot up 15 cents to 20 cents due to higher feed prices alone.

"We are seeing all of our costs go up, packaging, cartons, feed, freight labor," Brunnquell said, as quoted in the report.