Soymeal Exports Face Crisis as Soybean Prices Soar

26-May-2026 06:30 PM

Mumbai: With soybean prices rising sharply in the wholesale markets of major producing states, the production cost of soymeal has increased significantly. Consequently, exporters are being forced to cancel previously signed contracts for soymeal that were concluded at lower price points.

On one hand—for the first time since 2021—Indian exporters have had to call off a deal involving the export of 25,000 tonnes of soymeal; on the other, Indian importers have entered into contracts to import 80,000 tonnes of soybeans from African nations.

In the domestic market, the 'plant delivery' price of soybeans has surged rapidly, climbing above ₹7,000 per quintal and is now fast approaching the ₹8,000 mark. It has become difficult to maintain competitive export offer prices in the global market for soymeal produced from soybeans procured at such elevated rates. The cancellation of soymeal export deals from India is likely to benefit suppliers in Argentina, Brazil, and the United States.

In traditional Asian markets, the export performance of Indian soymeal continues to weaken, thereby enabling other exporting nations to strengthen their foothold in these regions. Conversely, the robust demand emerging from India presents African suppliers with a prime opportunity to boost their soybean exports at higher price points.

According to informed sources, current soymeal prices stand approximately $200 per tonne higher than the rates prevailing at the time the export contracts were originally signed. Since exporters could not absorb such substantial losses—and importers were unwilling to pay the higher rates—both parties mutually agreed to cancel the contracts scheduled for May and June shipments. Over the past month, soymeal prices have witnessed a sharp surge of 41 percent, reaching a peak level of ₹66,000 per tonne.