India’s industry associations seek government intervention on soybean meal supply crisis

Previously, in a similar situation, in 2020-21 period when a shortage of soybean meal, caused by low production levels, plunged the entire industry into crisis, the government provided timely support to the sector by authorizing the import of 1.2 million tons of GM soybean meal.

To overcome the crisis, the poultry, dairy and aqua industry associations have requested the Ministry of Commerce and the Ministry of Animal Husbandry for the below options:

1. Implementation of a ‘Market Linked Mechanism for Import Policy’ in order to safeguard the interests of both soybean-producing farmers and poultry, dairy and aqua farmers. Under this mechanism, whenever the market price of soybean exceeds 25% above MSP or rises beyond INR 6,660 per quintal, permission for the import of GM soybean meal may automatically be granted. This would help protect the interests of both producer farmers and consumer farmers.
2. Implementation of stock limits: Also, ensure stock limits for all warehouses and stock locations in Maharashtra, Madhya Pradesh, Rajasthan and Andhra Pradesh. They should also report their stocks daily and weekly to the authorities, as was asked by the Ministry of Food and Public Distribution. However, the stockist lobby in various states has deferred this, which is resulting in this price surge.
3. Import of GM soybean meal: Permission may kindly be granted for 1.5 million tons of GM soybean meal, which will control the current and future crisis until the new crop arrival in the month of October. After paying the duty, the landed price of soybean meal would be INR 62,500 per ton, which will not adversely affect Indian soybean farmers, as soya seed prices would still remain above the MSP declared by the government of India for soya seed. This will not only help stabilize the current soybean meal prices, which will benefit the livestock feed industry, but also earn a healthy revenue of INR 450 crores for the government. Alongside, it will help farmers get better realization of their crops by getting 25-30% more than the declared Government MSP on soya seed.

Such calibrated and temporary measures will help stabilize feed input markets, protect lakhs of poultry farmers, moderate egg and chicken prices for consumers, and safeguard livelihoods across rural India.

We are confident that the government’s positive intervention will play a pivotal role in safeguarding the interests of poultry, aquaculture and livestock farmers across the country.

The industry has still five months to operate before the new crop supplies come in, an immediate intervention of GM soybean meal imports will give much needed respite to the poultry industry and will have a balancing act between supply and demand. If left unaddressed, the situation may trigger a contraction in poultry production, with effects on food inflation and the rural economy.

Given the current circumstances, taking the mentioned steps appears imperative to ensure the continuity of the industry and to safeguard the interests of consumers and to ensure an uninterrupted supply of protein-rich feed

Ricky Thaper said that the industry associations are hopeful that Hon’ble Minister shall give urgent consideration and take early action in the larger national interest of ensuring protein affordability, food security and stability in the poultry sector.