By Sky Link Times Business Desk
Bangladesh has signed purchase agreements worth $1.25 billion with the United States Soybean Export Council (USSEC) to import soyabeans and soyabean meal — a move aimed at narrowing the country’s $6 billion trade deficit with Washington.
The deal, hailed as a milestone in U.S.–Bangladesh agri-trade, is expected to ensure consistent supply and promote sustainability under the U.S. Soy Sustainability Assurance Protocol (SSAP). But industry analysts say Bangladesh could source similar products more cheaply from neighboring India, thanks to shorter logistics routes and lower freight costs.
Five leading soy value chain companies from Bangladesh — Meghna Group of Industries (MGI), City Group, Delta Agrofood Industries Ltd, Mahbub Group, and KGS Group — have signed deals to import $1.25 billion worth of soy products from the USA over the next year, a move that will significantly reduce the trade gap between the two countries.
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At the signing ceremony, Kevin M Roepke, executive director for the Middle East, North Africa, and South Asia at USSEC, said the poultry, agriculture, and dairy sectors in Bangladesh will benefit from higher imports of high-quality US soybean products.
Amirul Haque, managing director of Delta Agrofood Industries Ltd, said it is possible to increase the import of US products to $3.5 billion soon if crude oil and LPG are included along with soybean products.
The U.S. Offer: Reliability at a Premium
According to U.S. market data, soybean futures were trading around $11.04 per bushel (≈ $406 per tonne) on November 5, 2025 (Trading Economics). Adding export basis, ocean freight, and handling to Chattogram port pushes the landed price to roughly $500–520 per tonne.
Freight alone from U.S. Gulf ports to Bangladesh averages $55–65 per tonne, given the 14,000 km shipping distance. However, U.S. soybeans are preferred for their consistent protein quality, sustainability certification, and financing flexibility.
India’s Advantage: Lower Cost and Faster Delivery
India, a major soya producer, exported around 3.5 million tonnes of soybeans and 2 million tonnes of soyabean meal in FY 2024-25.
Current Indian export prices range between ₹26,000–30,500 per tonne, equivalent to US$315–365 per tonne (SOPA & IndexMundi data).
With freight from Indian ports such as Haldia, Paradip, or Kandla to Chattogram estimated at $20–30 per tonne, and local handling about $20 per tonne, the total landed cost of Indian-origin soybean meal could be $410–430 per tonne — nearly $80–90 cheaper per tonne than U.S. shipments.
Moreover, transit from India to Bangladesh takes 3–5 days, compared with 30–40 days from the U.S., reducing both freight risk and storage costs.
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Cost vs. Strategy: Why Dhaka Chose Washington
Experts note that the decision was not purely commercial. The soybean deal forms part of Bangladesh’s broader trade diplomacy, designed to strengthen bilateral relations and reduce the persistent U.S. trade gap.
By sourcing from the U.S., Bangladesh also secures access to:
- Large and stable supply chains unaffected by regional policy shifts,
- Sustainability-certified soybeans under the SSAP, and
- Potential goodwill in trade negotiations on garments and other exports.
However, several agro-economists caution that over-reliance on distant suppliers could increase import costs, especially at a time when Bangladesh’s foreign exchange reserves are under pressure.
Landed Cost Comparison (Approximate per tonne, Nov 2025)
| Origin | Base Price | Freight | Handling/Local Costs | Total Landed Cost |
|---|---|---|---|---|
| United States | $406 (FOB) | $60 | $40 | ≈ $506 – 520 |
| India | $365 (avg.) | $25 | $20 | ≈ $410 – 430 |
Bottom Line
While the U.S. agreement boosts Bangladesh’s trade diplomacy and ensures supply security, India remains the more economical source for soybeans and soybean meal on a purely cost basis.
Analysts suggest a diversified procurement strategy — sourcing part of the demand from India for cost efficiency, while maintaining U.S. imports for quality assurance and diplomatic balance.
Source references:
Trading Economics | IndexMundi | SOPA (India) | USSEC | AgManager | Industry Analyst Reports (Nov 2025)
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