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Indian soyameal exports rose marginally to 2.77 lakh tonnes in December, driven by strong European demand, especially from Germany and the Netherlands. Despite this, cumulative exports for the 2024-25 oil year remain 21% lower year-on-year due to India's high pricing in the global market. Domestic soyabean arrivals dropped 11%, causing a 14% dip in soyameal production. Prices of soyabeans continued to trade below the MSP, with government procurement reaching 8.84 lakh tonnes, primarily in Madhya Pradesh and Maharashtra. The livestock feed sector's demand remained flat, while soyabean crushing also declined 14%, reflecting bearish domestic and global trends.

Key Highlights

* Soyameal exports up 1% in December, driven by European demand.

* Cumulative 2024-25 exports dropped 21% due to high pricing.

* Domestic soyabean arrivals fell 11%, lowering production by 14%.

* Soyabean prices ruled below MSP across key regions in India.

* Government procured 8.84 lakh tonnes, majorly from Madhya Pradesh.

Indian soyameal exports witnessed a slight uptick in December, reaching 2.77 lakh tonnes (lt), compared to 2.74 lt during the same month last year, buoyed by higher demand from European nations like Germany and the Netherlands. Germany emerged as the largest buyer with nearly 50,000 tonnes, followed by the Netherlands and other European countries. However, cumulative exports for the oil year 2024-25 have plunged by 21% to 5.18 lt, as Indian soyameal remains expensive in global markets.

Domestic soyabean arrivals dropped 11% year-on-year to 46 lt by December-end, contributing to a 14% decline in soyameal production, which stood at 24.07 lt for the October-December period. Crushing volumes also fell to 30.50 lt from 35.50 lt in the previous year, highlighting the impact of bearish price trends.

Soyabean prices continue to trade below the Minimum Support Price (MSP) of Rs.4,892 per quintal, with modal prices in Madhya Pradesh ranging from Rs.3,500 to Rs.4,400. This has compelled the government to procure 8.84 lt of soyabeans, primarily from Madhya Pradesh and Maharashtra. Stocks held by crushing units and traders are also lower year-on-year.

The livestock feed sector’s demand remained steady at 5.5 lt, while the direct consumption of soyabeans showed a marginal increase. With global and domestic markets under pressure, the soyameal trade continues to navigate challenges related to pricing and demand.

Finally

Rising European demand slightly boosted soyameal exports, but India faces pricing challenges. Supportive policies and robust market strategies are essential to sustain the sector.

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