Experts say 5% GST on oilseeds may spur soymeal import, hit farmers.

The decision to impose a 5% GST rate on mills purchases of oilseed for crushing could have cascading effects, likely putting under threat India status as a soymeal exporter and curbing farmer realisations. India is currently able to export only around 15% of soymeal production due to premium pricing of the meal. But increase in the cost of production due to GST may have further impact on overseas shipments. Although India disallows import of soymeal made from genetically-modified soyseed and 80-85% of global soybean output is of GM variety, Ukraine, pockets of Brazil, and some African nations still cultivate non-GM oilseed.