Soybean Procurement Progress Across Key States

The Indian government has procured 14.73 million tonnes of soybean at the Minimum Support Price (MSP) of USD 0,59 per kg as of February 11, 2025. More than half of this procurement has come from Maharashtra, Madhya Pradesh, and Rajasthan, ensuring price support for farmers in these states.

According to NAFED data, procurement figures across states are as follows:

• Maharashtra: 8.36 million tonnes
• Madhya Pradesh: 3.88 million tonnes
• Rajasthan: 0.98 million tonnes
• Telangana: 0.83 million tonnes
• Gujarat: 0.48 million tonnes
• Karnataka: 0.18 million tonnes

The procurement process is expected to conclude soon in most soybean-producing states. The government's first advance estimates, released in November 2024, predict soybean production for 2024-25 at 133.60 million tonnes, a slight increase from 130.62 million tonnes the previous year.

However, modal prices of soybean in Madhya Pradesh, India’s largest producer, continue to range between USD 0,45 to 0,57 per kg, reflecting weak market sentiment.

Soybean Crushing Declines as Demand Weakens

The Soybean Processors Association of India (SOPA) reported that 42.50 million tonnes of soybean have been crushed by January-end, a 10% decline from 47 million tonnes in the same period last year. As of January 2025, stocks held by farmers, plants, and traders were estimated at 57.40 million tonnes, reflecting lower demand.

SOPA has estimated the total soybean crop size for the 2024-25 oil year (starting October) at 125.82 million tonnes. However, market arrivals by end-January were 57.50 million tonnes, lower than 62 million tonnes recorded in the previous year.

Soybean meal production has also dropped, with 33.54 million tonnes produced by January-end, down from 37.09 million tonnes last year. Exports of soybean meal followed a similar trend, falling to 7.96 million tonnes, compared to 9.34 million tonnes in the previous year.

Lower Demand from Feed and Food Sectors

The decline in soybean crushing is mainly due to lower demand from the domestic feed industry, which has reduced its offtake to 22.50 million tonnes, down from 24 million tonnes last year. Similarly, food sector demand dropped from 3 million tonnes to 2.85 million tonnes in the same period.

On the export front, France emerged as the largest buyer of Indian soybean meal, importing 1.27 million tonnes, followed by Germany, which purchased 1.03 million tonnes in the 2024-25 oil year (starting October).

Conclusion: Supply Remains Strong, but Demand Slows Down

Indian government procures soybean to support farmers. Crushing activity and exports remain under pressure due to weak demand from feed and food industries. With lower market arrivals and reduced international demand, soybean prices may continue to face downward pressure in the coming months. However, a rebound in feed demand and stronger global exports could provide stability to the market in the long term.





Click here to reach our trading platfrom CMBroker