India Threatens 45% Tariff On Soybean Cargoes Linked To Nigeria

Indian customs authorities have launched an investigation into a surge in soybean imports declared as originating from Niger, amid suspicions that some of the cargoes were actually sourced from Nigeria and mislabelled to evade import tariffs, Reuters has reported.

The investigation could expose importers of the affected shipments to a 45 per cent import tariff if Indian authorities determine that the soybeans were wrongly declared as originating from Niger, according to government and industry sources familiar with the matter and a customs letter seen by Reuters.

Niger emerged as the largest declared supplier of soybeans to India during the first seven months of 2026, despite producing less than 100 metric tonnes of the oilseed annually, according to assessments within Africa’s soybean milling industry.

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By contrast, Nigeria is Africa’s leading soybean producer and exporter, although it remains a relatively small player in the global market.

Indian customs authorities are now asking importers to demonstrate that soybean shipments declared as originating from Niger genuinely qualify for duty-free treatment available to least-developed countries, including Niger, Reuters reported.

The investigation follows a dramatic increase in India’s soybean imports. Trade ministry data showed that the country imported 909,606 tonnes of soybeans in the first seven months of 2026, compared with only 1,996 tonnes during the same period a year earlier.

Of the 2026 imports, 380,868 tonnes were declared as originating from Niger, despite the country’s extremely limited soybean production. No soybean shipments from Niger were recorded in India’s imports during the corresponding period a year earlier.

In notices sent to importers, Indian customs authorities reportedly questioned the scale of the shipments, saying available production data suggested that the volume imported exceeded Niger’s normal production and export capacity.

“The production data of soybeans in Niger is very much less. Therefore, it appears that import quantity exceeds the usual levels of production and export capacity of Niger,” the customs department said in notices to importers seen by Reuters.

The authorities have also asked importers to provide details of inland transportation, including transit permits for cargo moving from Niger.

Niger is landlocked and soybean shipments declared as originating from the country can be transported through neighbouring Nigeria, a factor that has become central to the Indian investigation.

The consignments were initially cleared after importers submitted documents required for duty-free treatment, including certificates of origin and phytosanitary certificates issued by Niger, according to sources cited by Reuters.

However, customs authorities are now seeking additional evidence to establish the actual origin of the cargoes.

An Indian importer who received a customs notice said the company had relied on documentation supplied by its overseas suppliers.

“We imported the soybeans after suppliers told us they originated in Niger and provided all the necessary documents,” the importer said.

The importer added that it was difficult for Indian buyers to independently verify the origin of cargoes in Africa.

“It is not possible for us to physically travel to Africa to verify the origin ourselves,” the importer said.

Indian importers began receiving the customs notices late last month and have subsequently stopped purchasing soybeans declared as originating from Niger, according to a Dubai-based exporter cited by Reuters.

The investigation has also raised concerns over shipments that have already arrived at Indian ports or are currently in transit.

Such cargoes could become stranded if neither importers nor exporters are willing to bear the potential 45 per cent duty that could be imposed if the shipments are found to have been mislabelled.

The development comes as India faces a sharp increase in demand for imported soybeans following a decline in domestic production linked to dry weather after last year’s floods.

The investigation could also open opportunities for other West African producers, particularly Togo and Benin, to expand soybean exports to India through legitimate trade channels.

For Nigeria, the development places increased scrutiny on the country’s soybean export supply chain, particularly the movement of agricultural commodities through neighbouring Niger and the documentation used to establish their country of origin.

Reuters reported that two government sources and two industry sources with knowledge of the matter confirmed that Indian customs authorities were seeking proof of origin from importers.