Falling Demand Impacts Indian Soyameal Exports and Production

India experienced a significant decline in soyameal exports, dropping by 19% to 0.95 million tonnes during October-February of the 2024-25 oil year, compared to 1.17 million tonnes in the same period last year.

Similarly, soyameal production decreased to 4.49 million tonnes, down from 4.49 million tonnes previously. Weak domestic and international demand primarily caused this reduction.

Moreover, sluggish soybean crushing activity continued due to market prices persisting below the minimum support price (MSP). Market arrivals fell by 6% to 6.6 million tonnes, compared to 7 million tonnes last year. Soybean crushing also declined nearly 9.6%, reaching 5.15 million tonnes.

Declining Demand from Domestic Livestock and Food Sectors

Demand from the livestock feed sector decreased by 6.7%, with consumption at 2.75 million tonnes compared to 2.95 million tonnes last year. Likewise, the food industry's soyameal consumption dropped from 0.375 million tonnes to 0.375 million tonnes.

Domestic Soyameal Stocks Remain Substantial

Currently, stocks at traders and crushing plants stand at approximately 4.8 million tonnes. Additionally, government agencies such as Nafed and NCCF have procured about 2 million tonnes at the minimum support price, with procurement activities ongoing.

Europe Remains Key Market Despite Weaker Global Demand

Despite overall softness in international demand, European markets continue to support Indian soyameal exports:

• France remained the top importer with 0.14 million tonnes.
• Demand from Germany and other European countries also continued, importing significant quantities (0.1 million tonnes).
• Nepal imported approximately 0.103 million tonnes, contributing notably to regional exports.

Comparative Overview of Soyameal Market (Oct-Feb)

Future Market Trends Prediction

Looking forward, soyameal demand may remain uncertain, influenced by evolving global consumption patterns, ongoing geopolitical tensions, and the strength of domestic agricultural policies. Market participants are closely observing these factors, which will significantly shape soyameal trade dynamics in upcoming months.