top of page

India's Soybean Prices Plunge 17.51% YoY in Week 9 Amid Global Supply Surge

Writer's picture: Ipasai NewsIpasai News
soybean

In Week 9, soybean prices in India plummeted by 17.51% year-on-year (YoY), hitting USD 0.52/kg, marking a 4% month-on-month (MoM) uptick but a 2% week-on-week (WoW) downturn. This nosedive is attributed to the global oversupply, impacting India's market and potentially hindering export activities. In Maharashtra, a crucial region for soybean cultivation alongside other crops, farmers are grappling with financial strain due to the depressed prices, prompting contemplation of ceasing soybean farming in the future.


India saw a significant YoY drop of 17.51% in soybean prices, plunging from USD 0.63/kg in the same period in 2023 to USD 0.52/kg in Week 9. Despite a 4% MoM price surge, there was a 2% WoW decline. This downward trajectory follows a peak of USD 0.62/kg in November 2023.


The surge in global soybean and soybean meal supply has triggered a price downturn, impacting the Indian market. The decline in global prices, amounting to around USD 100 per metric ton (mt) due to increased supply, poses challenges for India's market competitiveness and could impede export activities. In Madhya Pradesh, soybean prices fell below the Minimum Support Price (MSP), causing financial distress for farmers unable to cover their production costs. The dip in global prices may render Indian soybean meal less attractive internationally, potentially slowing down export shipments.


In Maharashtra, soybean is a vital crop alongside cotton, onion, and sugarcane. Despite being both an oilseed and pulse crop, soybean is primarily utilized as an oilseed due to edible oil shortages, heightening India's reliance on imports for this essential commodity. However, farmers in Maharashtra are disheartened by the dismal soybean prices, leading to financial woes, particularly in the Marathwada region. This dire situation has prompted some farmers to contemplate discontinuing soybean cultivation in the upcoming seasons.

10 views0 comments

Comentarios


bottom of page