Soyameal exports in December rose slightly to 2.77 lakh tonnes (lt), driven by higher demand from European markets, particularly Germany and the Netherlands. However, the offtake by the domestic livestock feed sector remained stable at 5.5 lt, according to the latest data from the Soyabean Processors Association of India (SOPA).
While December’s exports were up by just over 1% compared to 2.74 lt in the same period last year, cumulative exports for the 2024-25 oil year, starting October, have fallen by 21% to 5.18 lt from 6.59 lt in the previous year. The dip in exports is attributed to India’s higher pricing, which has made it less competitive in the global market. Exports also saw a decline in both October and November.
Top Export Markets
Germany was the largest importer of Indian soyameal in December, purchasing 49,875 tonnes, followed by the Netherlands at 39,088 tonnes, Bangladesh at 32,002 tonnes, and France at 28,542 tonnes. Neighboring Nepal also imported over 27,724 tonnes, while Belgium bought more than 17,800 tonnes. Notably, Iran, a major buyer in the previous year, saw a sharp reduction in its purchases, with only around 500 tonnes imported in December.
Soyabean Market Trends
Domestic market arrivals of soyabean were estimated at 46 lt by the end of December, down 11% from 52 lt in the previous year. This decline is reflective of a bearish price trend, influenced by global market conditions. Soyabean crushing for the period was also down by 14%, totaling 30.50 lt compared to 35.50 lt last year. However, direct usage of soyabean increased slightly to 1.40 lt from 1.10 lt.
Stocks with crushing units and traders stood at 89.82 lt, a decrease from 93.46 lt a year ago.
Domestic Consumption Trends
Soyameal production dropped by 14% to 24.07 lt from 28.01 lt during the October-December period. Domestic consumption of soyameal in the food sector decreased marginally to 2.10 lt, from 2.25 lt last year. The feed sector also saw a slight decline, with consumption down to 17 lt from 18.50 lt.
Pricing and Procurement
Soyabean prices continue to remain below the Minimum Support Price (MSP) in key producing regions. While the government set the MSP at INR 4,892 per quintal, prices in Madhya Pradesh—the largest soyabean-producing state—ranged between INR 3,500 and INR 4,400 per quintal as of January 13.
As of January, government agencies have procured over 8.84 lt of soyabean, with the majority coming from Madhya Pradesh (3.88 lt) and Maharashtra (3.10 lt). Other states, including Telangana, Rajasthan, Gujarat, and Karnataka, have contributed smaller quantities, with the total government procurement target set at 33.85 lt.
Source: The Business Line
