New Delhi. The impact of the bilateral trade agreement with the US is clearly visible on the Indian soybean market, with plant delivery prices falling by ₹400-500 per quintal within a week. During the week of February 7-13, the three top producing states—Madhya Pradesh, Maharashtra, and Rajasthan—saw a sharp decline in plant delivery prices.

It is noteworthy that the bilateral trade agreement allows duty-free imports of soybean oil and DDGS from the US. This is likely to severely impact the domestic soybean oil and soymeal trade. It is worth noting that imports of US products have not yet begun, but the impact on the Indian market has already begun.

The plant delivery price of soybeans, which had previously reached a high of ₹5800-₹5900 per quintal, has now fallen to ₹5400-₹5500 per quintal. Further price declines are expected, leaving farmers frustrated and disappointed.

Due to the sharp decline in soybean prices, refined soybean oil prices also declined by ₹2 to ₹4 per kg. The price fell by ₹15 to ₹1335/₹1340 per 10 kg in Haldia, ₹25 to ₹1340 in Kandla, ₹30 to ₹1380 in Kota, and ₹40 to ₹1360 per 10 kg in Mumbai. The decline in soybean oil prices has reduced millers' income. On February 11, 250,000 bags of soybean arrived in national markets, each bag weighing 100 kg.

Soybean DOC trading remained sluggish in Maharashtra, and prices fell sharply. Demand from the poultry and animal feed industries declined. However, export demand for soybean meal may improve if the softening price trend continues.