New Delhi: Madhya Pradesh’s soybean sector is facing a severe downturn despite strong production, as global disruptions linked to tensions involving Iran and the United States begin to impact demand. The state, which contributes nearly half of India’s soybean output, is witnessing declining exports and mounting pressure on farmers.
The ongoing conflict in West Asia has disrupted key shipping routes, significantly affecting the export of soymeal, a major agricultural commodity used in poultry and livestock feed. Export volumes are projected to drop sharply, falling from 93,000 tonnes in February to around 40,000 to 50,000 tonnes in March, with further decline expected in April.
At local mandis, including markets in Bhopal and Sehore, traders report weakening demand and rising uncertainty. Farmers are increasingly worried about falling prices. Many have already sold their produce at rates around Rs 3,700 to Rs 3,800 per quintal, but fear prices could fall as low as Rs 2,500. With cultivation costs ranging between Rs 9,000 and Rs 10,000 per acre, shrinking returns are placing significant financial strain on farming households.
Industry experts highlight that the issue extends beyond short term disruptions. Indian soymeal is currently priced significantly higher than global competitors, making it less attractive in international markets. While Indian exports are priced at around 500 dollars per tonne, countries like Brazil and Argentina offer the same product at considerably lower rates, leading to reduced demand from key buyers in West Asia and beyond.
The situation has resulted in a buildup of unsold stock in the domestic market, further depressing prices. Experts also point to structural challenges, noting that India’s soybean yield remains far lower than that of leading producers. Without improvements in productivity and competitiveness, the sector is likely to continue facing difficulties.
The crisis underscores the vulnerability of agricultural markets to global geopolitical developments, leaving farmers in Madhya Pradesh grappling with uncertainty and declining incomes.
