Soymeal loses shine to DDGS: demand dips, prices remain flat

25-Jun-2025 09:06 AM

Soymeal loses shine to DDGS: demand dips, prices remain flat
★ Sharp decline in demand: In the 2024-25 oil year, soymeal consumption fell to 6.6 million tonnes, down by 700,000–800,000 tonnes from earlier estimates.
★ Soymeal prices have remained flat in the range of Rs. 27,000–Rs. 31,000 per tonne, showing no significant movement.
★ DDGS (Dried Distillers Grains with Solubles), a cheaper and nutritious by-product of maize-based ethanol production, has replaced soymeal in livestock feed.
★ India’s goal of achieving 20% ethanol blending in petrol by 2025 has boosted both ethanol and DDGS production.
★ In 2024-25, India is expected to produce 6.5 billion litres of ethanol from grains (mainly maize), while only 2.5 billion litres will come from sugarcane.
★ Soybean yields only 18% oil, while the remaining 82% is soymeal. With soymeal demand falling, crushing has declined, pulling prices to multi-year lows.
★ The government’s cut in import duties on edible oils has made imported crude oils more attractive, further denting domestic crushing margins.
★ From last season’s harvest to the current sowing period, soybean prices have remained under pressure.
★ The U.S. is pushing India to allow imports of GMO soybeans, adding to uncertainty for domestic growers.
★ With mounting pressures on soybean and its by-products, India’s Agriculture Minister has expressed concern over the situation.
★ A perfect storm of cheaper feed alternatives, changing ethanol policies, global trade pressure, and import dynamics is weighing heavily on India’s soybean sector.