LT Foods announced a major positive outcome regarding the US Department of Commerce’s administrative review on its subsidiary, Ecopure. The provisional Countervailing Duty (CVD) rate applicable to exports of organic soybean meal has been drastically cut. The rate dropped from an initial 340.27% to 75.48%, resulting in a potential liability reduction estimated at ₹163 crore for sales made in the 2023 calendar year.
Resolution in US Trade Investigation
LT Foods Limited has provided an update concerning the administrative review initiated by the US Department of Commerce (US DoC) regarding the Countervailing Duty (CVD) order on organic soybean meal exports from India. This review covered the period from January 1, 2023, to December 31, 2023.
Impact of Adverse Facts Methodology
Previously, it was disclosed that the US DoC had applied the ‘adverse facts available’ (AFA) methodology to Ecopure Specialities Limited, a step-down subsidiary. This led to the imposition of a provisional CVD rate of 340.27%, which applied to Ecopure’s sales of Rs. 50 crore during the review period.
Final Order Reduces Financial Exposure
The Company confirms receipt of the US DoC’s Final Order, dated February 23, 2026, which significantly revises the applicable duty rate. The CVD rate imposed on Ecopure’s organic soybean meal exports to the United States has been substantially reduced from 340.27% to 75.48%. This favorable revision translates directly into a reduction of potential liability by an estimated Rs. 163 crore.
LT Foods ensures stakeholders that the necessary records regarding this positive development have been duly noted.
Source: BSE
