Concern over Falling Soybean Prices

29-Oct-2025 06:58 PM

Soybean prices across the country continue to remain under pressure, staying below the Minimum Support Price (MSP). This situation has become a matter of concern for both farmers and the oil industry.

According to SOPA (Soybean Processors Association of India), soybean crushing in the 2024–25 season has declined to 113.5 lakh tonnes, compared to 122.5 lakh tonnes in 2023–24, indicating weaker market demand.

However, production has increased — estimated at 125.82 lakh tonnes in 2024–25 against 118.74 lakh tonnes in 2023–24. The rise in production and decline in crushing have led to higher supply and weaker demand, putting downward pressure on prices.

Soymeal production has also fallen to 89.56 lakh tonnes, compared to 96.66 lakh tonnes last year. Similarly, soymeal exports have declined to 20.23 lakh tonnes in 2024–25 from 22.75 lakh tonnes in 2023–24.

One major reason behind the reduced crushing is the high import of soya oil, which has lowered demand from domestic oil mills.

Impact of Government Agency Sales

Sales of Kharif 2024 soybean by central agencies have added further pressure on the market:

* On August 18, 2025, soybean was sold in Gujarat at ₹4,536–4,575 per quintal.

* On July 28, 2025, in Maharashtra at ₹4,501–4,571 per quintal, and by October 8, 2025, prices fell to ₹4,391 per quintal.

* In Madhya Pradesh, rates dropped from ₹4,451–4,476 on July 28, 2025, to ₹4,109–4,190 on September 17, 2025, and further to ₹4,011–4,012 per quintal on October 29, 2025.

For more than a year now, soybean prices have been running below MSP, making it difficult for farmers to recover their production costs while the oil industry also faces mounting pressure.

Experts suggest that the government must intervene immediately to ensure price stability. If the current situation continues, it could adversely affect future sowing decisions and push the domestic oil industry into deeper crisis.

At present, reduced production, implementation of the Bhavantar (price difference) scheme, and the start of government procurement may offer some price support. However, government purchases are likely to remain limited this year, as Madhya Pradesh is operating under the Bhavantar scheme — meaning the procured produce will not enter government warehouses.

Lower procurement this season could actually help the market recover better in the coming months.