Indian farmers hold soybeans as demand stabilizes
As farmers continued to conserve their crops, oilseed crushing in India declined. This could force the country to increase its imports of edible oils such as soybean oil, palm oil and sunflower oil, Reuters reported.
However, local soybean production is expected to increase by more than a tenth from a year ago.
At the start of MY 2020/21 in October 2020, soybean futures were trading at around Rs 3,800, but prices jumped to a record Rs 10,680 in August 2021 due to production weaker and strong demand from the poultry industry.
Rising prices prompted farmers to expand the area planted with soybeans.
But before farmers could harvest their new crops, New Delhi took a series of measures to lower the prices of soybean meal and edible oil, including allowing the very first imports of genetically modified soybean meal and by reducing import taxes on edible oil.
The measures triggered a collapse in local soybean futures prices to around 5,200 rupees in late October, before the market slowly recovered to around 6,600 rupees this week, more than a third below early August levels. .
Declining soybean crushing levels are in turn leading to lower soybean meal supplies, just as demand for feed from the poultry sector has picked up, said Manoj Agrawal, general manager of exporter Maharashtra. Oil Extractions.
Last week, the All India Poultry Breeders Association asked the government to allow the import of 550,000 tonnes of soybean meal.