12 May 2026

Soybean meal price surge rattles India’s poultry sector

Soybean meal prices jumped 25% in a month, prompting India’s poultry industry to seek urgent government intervention on feed costs.

A. Ashraf Ali

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A sharp rise in soybean meal prices is unsettling India’s poultry and livestock sectors, prompting urgent calls for government action. Industry groups warn that escalating feed costs threaten farm profitability and consumer prices.

Soybean meal prices have climbed from USD 0.59/kg in early April to USD 0.74/kg by early May 2026. This 25% increase has also lifted prices of corn and de-oiled rice bran, adding pressure on feed manufacturers and poultry farmers.

Feed accounts for 65–70% of poultry production costs, and soybean meal remains the primary protein source across poultry, aqua, and livestock feed formulations.

Dinesh Bhosale, former Chairman of the Compound Livestock Feed Manufacturers Association of India, described the situation as critical. He urged poultry associations to press ministers for immediate relief.

Dinesh Bhosale

“Government intervention is needed so that farmers can get feed at the right prices,” Dr Bhosale said.

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His warning comes as soybean production forecasts fall, raising further concern about feed availability.

Shrinking soybean crop tightens supply

The surge in feed costs coincides with expectations of reduced soybean production in the 2025–26 crop year.

Government estimates place output at 12.72 million tons, down from 15.26 million tons last season. Trade groups project even lower figures, with the Soybean Processors Association (SOPA) estimating closer to 11 million tons due to erratic weather, reduced acreage, and crop diversification.

Industry stakeholders warn that shrinking supplies are tightening soybean meal availability just as demand from poultry, dairy, and aquaculture continues to rise. With nearly five months before new crop arrivals, feed manufacturers fear prolonged shortages.

Poultry groups push for GM soybean meal imports

In response to the situation, national and state poultry associations have urged the Ministries of Commerce and Animal Husbandry to allow imports of 1.5 million tons of genetically modified (GM) soybean meal.

According to the Poultry Federation of India, calibrated imports could stabilize feed markets and ease pressure on farmers until domestic supplies improve.

Ricky Thaper, Joint Secretary of the Poultry Federation of India, said associations are already petitioning the government. He stressed that imports would provide “much-needed respite” and help balance supply and demand. Without intervention, rising feed costs could push egg and chicken prices higher, squeezing small and medium farmers.

Ricky Thaper

India previously permitted imports of 1.2 million tons of GM soybean meal in 2021, a move that helped stabilize feed costs during a similar supply crunch.

Processors push back against import plan

However, local soybean processors, particularly SOPA, opposes the import plan, arguing that domestic stocks remain sufficient.

SOPA warns that imports could depress local soybean prices, hurting farmers already facing lower yields.

Processors also caution that repeated import approvals during periods of price volatility may discourage long-term investment in India’s soybean sector and undermine its non-GMO positioning in export markets. They attribute recent volatility not only to crop concerns but also to global commodity trends and speculative trading.

Calls for tighter futures trading rules

Apart from import approvals, poultry associations want continued restrictions on soybean futures trading at the National Commodity & Derivatives Exchange. They argue that speculative activity during tight supply periods worsens volatility.

Industry stakeholders believe temporary policy measures could stabilize feed markets and protect both producers and consumers until new soybean supplies arrive. The government now faces the challenge of balancing farmer interests, processor concerns, and the growing demand for affordable feed supplies from India’s expanding poultry and livestock sectors.

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