Indian corn and soybean prices declined sharply after New Delhi agreed to permit duty-free imports of U.S. soyoil and distillers dried grains with solubles (DDGS). The move, part of a new trade framework with Washington, sparked immediate fears of a supply influx, driving corn down 4% and soybeans 10% in the past week.

This price erosion compounds existing market pressure from a record corn harvest, with summer-sown production jumping 14% to 28.3 million metric tons. Corn now trades around 1,820 rupees per 100 kg, significantly below the government's 2,400 rupee support price, as weak demand from ethanol producers and feed manufacturers leaves the market vulnerable to cheaper imports.

Farm unions, angered by the lack of prior consultation, have called a nationwide protest on February 12. Leader Rakesh Tikait called the deal a "body blow" to the sector. While one analyst suggests the short-term impact of DDGS imports may be limited, the immediate effect has been a transfer of value from domestic producers to consumers and importers.