Soybean cargoes stuck at Thai port due to import duty uncertainty

At least three shipments of soybeans were unloaded at the Thai port of Koh Sichang but are unable to clear customs as uncertainty over import duty rates and quota allocations continues to paralyze trade, several traders and a Thai feed producer told Platts (a division of S&P Global Energy) on January 26.

A representative of the Thai Feed Mills Association confirmed that “soybean imports into Thailand are banned from January 1, 2026,” and stated that they are awaiting further action from the Thai government, while 200,000 tonnes of soybeans are “still awaiting arrival at port.”

A Singapore-based grain and oilseed trader reported that three cargoes were unloaded onto barges at the Thai port: two for a meat processing plant and one for the Thai Feed Mills Association, but they were detained at customs.

The Thai cabinet meeting scheduled for January 27 is expected to address the protracted import license issue and possible measures to resolve the emergency. This decision will determine whether the soybean supply chain can resume normal flow or remain constrained for several weeks.

The situation is exacerbated by the anticipated arrival of three more soybean shipments in February, which could further complicate matters if the necessary permits are not restored, according to a source at a Thai soybean importer.

A second Singapore-based trader said this has impacted soybean crushing and feed mills, which have suspended sales and shipments. The trader added that he had received inquiries for soybean meal, a key product of the soybean processing process and a crucial ingredient in animal feed.

Uncertainty over import duties “created chaos and drove the price of soybean meal up from 14.25 baht/kg in the first half of January to 16.1 baht/kg (US$520/tonne),” a Thai grain and oilseed trader said.

Since the dissolution of parliament on December 11, Thailand has been under a caretaker government that has no authority to make policy decisions, including the 2026 duty-free soybean import quota and soybean meal import tariffs, as previously reported by Platts.

Without a new government regulation, soybean imports are automatically subject to tariff rates set by the World Trade Organization. According to the US Soybean Export Council, the initial quota of 10,922 tonnes can be imported with a 20% duty, while any imports above that amount will be taxed at 80%.

This represents a significant cost for Thai soybean processors, given that Thailand produces only 50,000–60,000 metric tons of soybeans annually, according to the USDA Foreign Advisory Service.

Thailand has four large soybean crushing plants with a combined daily capacity of 12,500 tons, but according to the USDA FAS, their utilization rate is only around 70%.

According to a Thai soybean producer, domestic buyers are still holding one to six weeks’ worth of product inventory, but the issue of import licenses and quotas is urgently needed by the end of January.

Tags: soybean, Thailand, imports, duties