New Delhi India

Important Facts of the News

Soybean prices in major producing states are trading below MSP of Rs 5,328 per quintal.
Model prices are in the range of Rs 3,700 to Rs 4,700 per quintal in various mandis.
Carry-forward soybean stock for oil year 2025-26 is estimated at 4.66 lakh tonnes, down 47 percent year-on-year.
Soymeal carry-forward stock is estimated at 0.68 lakh tonnes, 49 percent lower than last year.
Feed sector consumption of soymeal declined to 62 lakh tonnes in 2024-25 from 66 lakh tonnes last year.
Soymeal production in 2024-25 declined to 89.56 lakh tonnes from 96.66 lakh tonnes last year.
Soymeal exports dropped to 20.23 lakh tonnes from 22.75 lakh tonnes year-on-year.
Domestic food segment consumption of soymeal remained stable at 8 lakh tonnes.
Estimated soybean output for Kharif 2025 is 105 lakh tonnes, 16 percent lower than 125.81 lakh tonnes last year.
Yield has fallen from 1,063 kg per hectare last year to 920 kg per hectare due to heavy rainfall and diseases.

Soybean Prices Under Pressure in India

Soybean prices in India continue to face downward pressure, even as overall crop output and carry-forward stocks have declined sharply. Market sentiment has remained subdued for the past several months, with arrivals of the new crop in major producing regions contributing to the softness in prices. As a result, trading levels in many mandis are currently below the official minimum support price of Rs 5,328 per quintal.

Prices Remain Below MSP in Key Producing States

Across key soybean-growing states such as Madhya Pradesh, Maharashtra and Rajasthan, model prices are currently moving within a range of Rs 3,700 to Rs 4,700 per quintal. Trade sources note that weak demand from major consuming sectors, particularly livestock feed, has been a key factor limiting price recovery.

Carry-Forward Stock Levels Decline Sharply

According to recent supply-demand estimates from the Soybean Processors Association of India, the carry-forward stock of soybean for the oil marketing year beginning October 2025 is expected to be around 4.66 lakh tonnes. This represents a drop of nearly 47 percent from the previous year’s level of 8.94 lakh tonnes. Similarly, soymeal carry-forward stock is projected to fall by around 49 percent to 0.68 lakh tonnes.

Shifts in Feed Sector Reduce Soymeal Demand

Industry representatives attribute weaker soymeal demand to the increasing adoption of Distiller Dried Grains with Solubles (DDGS) as an alternative feed ingredient. DDGS, which is generated during ethanol production using grains such as maize and rice, has gained wider acceptance in recent years due to its comparatively lower cost.

During the 2024-25 oil year, consumption of soymeal in the livestock sector is expected to decline by nearly 6 percent to 62 lakh tonnes, compared to 66 lakh tonnes last year. Soymeal production has also decreased to 89.56 lakh tonnes from 96.66 lakh tonnes previously. Exports have softened as well, lowering to 20.23 lakh tonnes from 22.75 lakh tonnes.

Lower Yield Impacts Output

For the ongoing Kharif season, soybean output is estimated at about 105 lakh tonnes, marking a 16 percent reduction from last season. Excess rainfall and crop diseases such as yellow mosaic virus and aerial blight have negatively affected yields. Average yield levels have fallen to roughly 920 kilograms per hectare compared with 1,063 kilograms per hectare in the previous season.