Soybean and Groundnut Prices Below MSP, Crushing Units Face Heavy Losses: IVPA Secretary General S.P. Kamrah

27-May-2025 01:03 PM

Soybean and Groundnut Prices Below MSP, Crushing Units Face Heavy Losses: IVPA Secretary General S.P. Kamrah
★ Soybean and groundnut prices remained 15–17% below the Minimum Support Price (MSP) during the harvest period.
Over the past two years, domestic demand for soybean meal has declined sharply, primarily due to the abundant availability of Distiller’s Dried Grains with Solubles (DDGS) made from rice and maize.
★ Being a cheaper alternative, the poultry sector has shifted from soybean meal (SBM) to DDGS, resulting in reduced demand for SBM. This decline has led to lower crushing activity and reduced procurement from farmers, further dragging down soybean prices.
★ According to Kamrah, weak global meal prices have pushed crushing margins into negative territory. Even though the government increased import duties, many crushing units have cut down processing volumes due to mounting losses, leading to limited demand for domestic oilseeds.
★ The profitability of oil mills primarily depends on the difference between revenue from edible oil and oil meal sales and the cost of raw materials.
★ When both demand and prices of oil meals drop, this balance breaks, causing the industry to slip into losses.