India’s Soybean Sector Poised for Recovery as Acreage Expands, While Soymeal Prices Surge on Tight Feed Supplies

While India’s Poultry and Aquaculture farmers endured transient pricing pressues, the near-term future looks bright with potential increase in acreage under soybean farming.

New Delhi | 19 June 2026 — India’s soybean industry is entering a pivotal phase, with expectations of a larger 2026 crop driven by increased acreage even as domestic soymeal prices remain elevated due to tight inventories and robust demand from the poultry and livestock sectors.

Recent data from the Soybean Processors Association of India (SOPA) indicate that processors and feed manufacturers continue to face constrained soybean availability following last year’s smaller harvest, while favourable monsoon prospects and improved farmer economics are expected to encourage a significant rebound in planting this season.

Soybean Acreage Expected to Increase

Industry estimates suggest that soybean sowing during the current Kharif 2026 season could increase by up to 10% over last year’s estimated 12 million hectares, as farmers shift acreage away from more water-intensive crops such as cotton and paddy. Several factors are supporting this transition:

• Attractive soybean prices during the previous marketing season.

• Government emphasis on oilseed self-sufficiency.

• Rising domestic demand for edible oils and protein meals.

• Expectations of a normal southwest monsoon across major soybean-growing regions.

The acreage expansion is concentrated in Madhya Pradesh, Maharashtra, Rajasthan, Karnataka, and parts of Telangana, which together account for the majority of India’s soybean production.

Production Recovering After Smaller 2025 Harvest

The expansion follows a difficult 2025–26 oil year.

According to SOPA estimates:

Production declined sharply from 125.82 lakh tonnes in the previous season, largely because of adverse weather conditions that reduced yields across key producing states. Lower production also pushed opening inventories to their lowest level in several years.

Soymeal Prices Climb on Tight Domestic Supplies

One of the most significant consequences of reduced soybean availability has been the sharp increase in domestic soymeal prices.

The poultry industry—which consumes nearly 60–65% of India’s soybean meal output—has experienced sustained feed cost inflation during recent months. Feed manufacturers report that:

• lower crushing volumes,

• declining carryover stocks,

• strong domestic poultry demand,

• and improving export enquiries

have collectively supported soymeal prices despite higher crushing activity.

The supply tightness recently prompted Indian exporters to cancel several export commitments while simultaneously arranging imports of soybean meal to meet domestic feed demand, an unusual development for a country that has traditionally been a net exporter of soybean meal.

Crushing Activity Remains Strong

Despite lower crop production, processing activity has remained resilient. During the first two months of the current oil year (October–November 2025):

• Soybean arrivals reached 33 lakh tonnes.

• Crushing increased to 20.5 lakh tonnes, compared with 19.5 lakh tonnes during the corresponding period a year earlier.

• Soybean meal production rose to 16.18 lakh tonnes.

Higher crushing reflects sustained demand from both the edible oil and livestock feed industries.

Poultry Industry Driving Protein Demand

India’s rapidly expanding poultry sector continues to underpin soymeal consumption. The country produces:

• approximately 150 billion eggs annually,

• more than 5.5 million tonnes of chicken meat, and

• raises over 5 billion broilers each year.

Soybean meal remains the country’s primary vegetable protein source for poultry rations because of its high digestible protein content and favourable amino acid profile. Industry estimates indicate annual domestic soymeal consumption exceeds 11 million tonnes, with poultry accounting for the dominant share.

Edible Oil Imports Remain a Strategic Concern

India continues to depend heavily on imported edible oils, purchasing palm oil, soybean oil and sunflower oil primarily from Indonesia, Malaysia, Argentina, Brazil, Russia and Ukraine.

An increase in domestic soybean production could help moderate edible oil imports by improving local soybean crushing volumes and increasing domestic soy oil availability.

Global Market Factors Also Supporting Prices

International soybean fundamentals remain supportive. The latest USDA outlook projects:

• continued robust global soybean demand,

• higher soybean crushing,

• firm soybean product consumption,

• and relatively stable global soybean stocks.

Meanwhile, Brazil’s record soybean harvest and Argentina’s recovering production continue to shape international trade flows, although domestic Indian prices remain primarily influenced by local supply-demand dynamics.

Outlook

Market participants expect soybean prices to remain firm until clearer indications emerge regarding the size of the 2026 Kharif harvest.

A successful monsoon combined with expanded acreage could substantially improve soybean availability during the next marketing season, easing pressure on crushers and livestock producers while supporting India’s long-term objective of reducing dependence on imported edible oils.

However, until new crop arrivals begin later this year, processors, feed manufacturers and poultry integrators are likely to continue operating in a relatively tight protein meal market characterized by elevated soymeal prices and constrained inventories.

For India’s animal feed industry, particularly the poultry, dairy and aquaculture sectors, the pace of soybean sowing and subsequent crop performance will remain among the most closely watched agricultural indicators over the coming months.