India’s soybean cultivation is expected to decline this year, as farmers likely to shift to crops like corn and sugarcane in some areas, which have delivered better returns compared to the oilseed, according to farmers and industry officials said, reported Reuters.
“We’ve barely made any profit from soybean over the past three years, so this year we’re switching to corn — it’s giving better returns,” said Subodh Parmar, a farmer from Devas district in Madhya Pradesh, a key soybean-producing state.
Soybean prices have been weak in recent months, prompting many farmers to consider alternatives. “Soybean prices were under pressure in the last few months, which is prompting farmers to switch to other crops,” said D.N. Pathak, Executive Director of the Soybean Processors Association of India (SOPA).
As per the media report, the government has set a minimum support price (MSP) of ₹4,892 (approximately $57.29) per 100 kg of soybean. However, since the beginning of the marketing year in October 2024, actual market prices have consistently remained 10 to 20 percent below the MSP.
Major soybean-producing states include Madhya Pradesh, Maharashtra, Rajasthan, Andhra Pradesh, and Karnataka.
Despite its oilseed classification, soybean comprises over 80% meal and less than 20% oil. Demand for soymeal in India has declined, largely due to the availability of cheaper distiller’s dried grains with solubles (DDGS), a byproduct of ethanol production, said B.V. Mehta, Executive Director of the Solvent Extractors’ Association of India (SEA).
The poultry sector, a large consumer of soymeal, has increasingly turned to DDGS in the past two years, as it is more than 30% cheaper than soymeal, Mehta added.
In Maharashtra, India’s top sugar-producing state, favourable rainfall has led some farmers to transition to sugarcane, a water-intensive perennial crop, said a Mumbai-based dealer associated with a global trading firm, reported Reuters.
“It’s likely that this year’s soybean crop will be substantially lower than last year’s. That would undoubtedly increase India’s dependence on imported edible oils,” the dealer noted.
