Weekly Review- Soybean
14-Jun-2025 08:02 PM
Pressure on soybean prices due to increase in supply and availability
New Delhi. Due to the arrival of government stock along with farmers' goods and reduction in customs duty, the import of oil became cheaper, due to which the domestic market price of soybean declined in Madhya Pradesh and Maharashtra during the week of 7-13 June, while it remained stable in Rajasthan.
Reduction in import duty
On May 30, the central government reduced the basic import duty on crude category soy oil, palm oil and sunflower oil from 20 percent to 10 percent. As a result, edible oil companies have started reducing the price of their products.
Soy oil (refined)
During the week under review, the price of soy refined oil remained stable to a large extent, while the prices of some brands softened by 5-10 rupees per 10 kg. The price of soy refined oil softened by 5-5 rupees in Kota and Mumbai, 15 rupees in Kandla, but improved by 5 rupees in Haldia. On June 7, 2.20 lakh bags (quintals) of soybean were supplied to the markets across the country.
Soya DOC
The business of soya DOC was seen to be sluggish, due to which its prices remained stable or softened. Usually, a decline of 200 to 500 rupees per tonne was recorded. Data from Indore's well-known organization - Soybean Processors Association of India (SOPA) shows that compared to the 2023-24 season, the start of the marketing season of 2024-25 in eight months i.e. from October-2024 to May 2025, the total arrival of soybean in the markets across the country got stuck at 83.50 lakh tonnes from 89.50 lakh tonnes and its crushing also fell from 86.50 lakh tonnes to 79 lakh tonnes.
Production / Stock
Although SOPA has estimated the domestic production of soybean to increase by 7.08 lakh tonnes from 118.74 lakh tonnes in the 2023-24 season to 125.82 lakh tonnes in the 2024-25 season, its total availability will decline significantly due to very low previous stocks and a sharp decline in imports. The consumption of soymeal in the seed manufacturing industry is declining and the export of soy DOC is also declining this time compared to last year.