April 16, 2026

India's soymeal consumption expected to drop by around 7% in 2026-27 marketing year

Soymeal consumption in India is forecast to decline by around 7% during 2026-27 marketing year as poultry and livestock producers continue to shift to more cost-effective feed alternatives due to high prices and changing feed preferences, according to the US Department of Agriculture's local office in New Delhi.

Poultry and livestock segment are expected to accelerate their shift from traditional soybean meal to cost-effective alternatives as ethanol blending expands supplies of distiller's dried grains (DDGS) and de-oiled rice bran, FAS, New Delhi said.

However, exports are set for a strong growth on robust demand for the non-GMO Indian soymeal from the European countries. Soybean meal exports are projected to increase 13% on sustained European demand for non-GMO Indian meal, and rapeseed meal exports are forecast to rise 10%, with China expected to be the top importer following record purchases in late 2025, it said.

The soybean acreage is expected to fall 3% in 2026-27 compared with 2025-26, as farmers shift to more profitable crops like corn and wheat. In Madhya Pradesh and Maharashtra, India's top soybean-producing states, anticipation of increased corn planting – driven by better returns and supported by government procurement prices aimed at meeting higher ethanol blending targets – is expected to account for much of this decline.

Production is also expected to drop by 3% with reduced acreage with yields lowered to 0.92 tonne per hectare. The soybean production is forecast at 10.35 million tonne during 2026-27 over 10.7 milion tonne the previous year. Crushing is expected to be around 9.3 million tonne. Soybean processing is anticipated to decrease during 2026-27 compared to MY 2025/26, as narrow price margins limit profitability for crushers and processors.

The 2026-27 marketing year would mark the second consecutive year in which soybeans rank as India's second largest domestically produced oilseed, behind mustard/rapeseed. Agricultural diversification away from soybeans toward corn is intensifying and would likely continue it said.

FAS New Delhi forecasts India's soybean imports to remain stable at 200,000 tonnes for MY 2026-27, matching estimated MY 2025-26 levels, assuming an average crop in key African nations, particularly Benin, Niger and Togo—the primary supplier of non-GMO soybeans to India under least developed country (LDC) provisions with zero tariff rates.

Total oilseed meal production for 2026-27 is forecast at 20.1 million tonne, slightly below the current year's 20.2 million tonne, the USDA said.

- The Hindu Businessline