Rising Soymeal Exports Yet Sluggish Domestic Market

Indian soymeal exports witnessed a slight increase in December, with shipments reaching 277,000 tonnes, driven by higher demand from European countries such as Germany and the Netherlands. However, domestic soymeal offtake by the livestock feed sector remained flat at 550,000 tonnes, according to the Soyabean Processors Association of India (SOPA).

While December exports rose by 1% compared to the same period last year, cumulative exports for the oil year 2024–25 (starting October) dropped 21%, totaling 518,000 tonnes against 659,000 tonnes in the previous year. The decline in exports during October and November reflects India’s higher pricing in the global market, making it less competitive.

Key Buyers in December

Germany emerged as the largest buyer of Indian soymeal in December, importing 49,875 tonnes, followed by the Netherlands with 39,088 tonnes, Bangladesh at 32,002 tonnes, and France with 28,542 tonnes. Nepal purchased 27,724 tonnes, while Belgium imported 17,800 tonnes.

In contrast, Iran, a significant buyer in previous years, imported only 500 tonnes in December, highlighting a muted demand.

Soyabean Market Trends

Soyabean arrivals in Indian markets were estimated at 4.6 million tonnes by December-end, down 11% from 5.2 million tonnes during the same period last year. Crushing volumes also declined by 14%, totaling 3.05 million tonnes compared to 3.55 million tonnes in the previous year.

Direct use of soyabean increased slightly to 140,000 tonnes, up from 110,000 tonnes last year. Stocks with crushing units and traders were lower at 8.98 million tonnes, down from 9.34 million tonnes in the same period last year.

Impact on Soymeal Production and Prices

The reduced arrivals impacted soymeal production, which fell 14% to 2.41 million tonnes during October–December, compared to 2.8 million tonnes last year. Domestic consumption by the food sector declined marginally to 210,000 tonnes, while feed consumption fell to 1.7 million tonnes from 1.85 million tonnes.

Soyabean prices in key producing regions like Madhya Pradesh continued to trade below the Minimum Support Price (MSP) of USD 0,587 per kg. Market prices ranged between USD 0,420–0,528 per kg on Monday.

Government Procurement Efforts

To support farmers, government agencies have procured over 884,000 tonnes of soyabean so far. The bulk of this procurement—388,000 tonnes—was made in Madhya Pradesh, followed by 310,000 tonnes in Maharashtra. Smaller quantities were procured in Telangana (83,075 tonnes), Rajasthan (51,026 tonnes), Gujarat (32,687 tonnes), and Karnataka (18,282 tonnes). The government’s sanctioned procurement quantity for this season stands at 3.38 million tonnes.

Conclusion

While European demand has supported Indian soymeal exports in December, the overall export performance remains underwhelming due to India’s higher pricing in global markets. Declining soyabean arrivals and crushing volumes, coupled with prices below MSP, have added challenges for the domestic market. However, government procurement efforts aim to provide some relief to farmers and stabilize the market in the coming months.





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