Indian Government Procures 14.73 Lakh Tonnes of Soyabean Amid Weak Crushing Demand by Amit Gupta, Kedia Advisory
The Indian government has procured 14.73 lakh tonnes of soyabean at the minimum support price (MSP) of Rs 4,892 per quintal until February 11, with Maharashtra leading the procurement. The expected soyabean crop for 2024-25 is forecasted at 133.60 lakh tonnes, a slight increase from the previous year. Despite this, crushing activity has fallen by 10%, with about 42.50 lakh tonnes crushed till January-end. Domestic demand, particularly from the feed and food sectors, remains weak, with both sectors showing lower offtake. Soyabean meal exports have also declined, while France and Germany remain the largest buyers.
Key Highlights
* Government procures 14.73 lakh tonnes of soyabean at MSP.
* Maharashtra leads with 8.36 lakh tonnes of procurement.
* Crushing activity down by 10%, with 42.50 lakh tonnes crushed.
* Soyabean meal exports fall to 7.96 lakh tonnes till January.
* Weak demand from feed and food sectors impacts soyabean market.
As of February 11, the Indian government has procured a total of 14.73 lakh tonnes of soyabean at the minimum support price (MSP) of Rs 4,892 per quintal. Maharashtra has seen the highest procurement, contributing over 8.36 lakh tonnes, followed by Madhya Pradesh and Rajasthan. The procurement process is nearing completion in most major soyabean-producing states. The government has set a soyabean crop target for the 2024-25 season at 133.60 lakh tonnes, showing a slight rise from the previous year.
However, crushing activity has faced a significant setback, with a 10% decline in processing. By the end of January, 42.50 lakh tonnes of soyabeans had been crushed, down from 47 lakh tonnes in the previous year. The Soyabean Processors Association of India (SOPA) has also revised the crop size to 125.82 lakh tonnes, lower than earlier estimates. Furthermore, domestic demand from the feed and food sectors remains sluggish, with offtake at 22.50 lakh tonnes in the feed sector and 2.85 lakh tonnes in the food sector, both lower than the previous year's figures.
Soyabean meal exports are also facing challenges, with exports down to 7.96 lakh tonnes till January. Despite the overall weak demand, France and Germany continue to be the largest buyers of Indian soyameal.
Finally
While the government’s procurement of soyabean has been strong, weaker crushing and reduced demand from the feed and food sectors continue to weigh on the market, impacting overall growth.
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