India’s soybean cultivation is projected to decline as farmers opt for corn and sugar cane, which have proven to yield higher profits. This shift in preference comes as feedback from farmers and industry officials indicates that recent market conditions have made soybeans less lucrative. Soybeans are a primary summer-sown oilseed in India, and a decrease in acreage could significantly impact the country’s edible oil supply. India, already the largest importer of edible oils, may need to boost its overseas purchases of palm oil, soyoil, and sunflower oil to meet domestic demand.
One farmer from Madhya Pradesh, Subodh Parmar, shared that the lack of profitability from soybeans over the past three years has compelled him to switch to corn, which offers better returns. According to D.N. Pathak, executive director of the Soybean Processors Association of India (SOPA), soybean prices have faced downward pressure in recent months, prompting many farmers to reconsider their crop choices. The Indian government has set a minimum support price of 4,892 rupees ($57.29) per 100 kg for soybeans, but since the beginning of the marketing year in October 2024, prices have remained 10 to 20% lower than this benchmark.
Soybeans are primarily grown in regions reliant on monsoon rains, which are anticipated to be above average this year and play a vital role in agricultural yields. Major soybean-producing states include Madhya Pradesh, Maharashtra, Rajasthan, Andhra Pradesh, and Karnataka. Furthermore, local demand for soymeal has waned due to the availability of cheaper alternatives like distiller’s dried grains with solubles (DDGS), which are favored by the poultry industry for their cost-effectiveness. In Maharashtra, increased rainfall has led some farmers to pivot toward the water-intensive sugarcane crop, further indicating that soybean output is likely to diminish.
This decline in soybean production stands to increase India’s reliance on edible oil imports, particularly from countries like Indonesia, Malaysia, Argentina, Brazil, Russia, and Ukraine.