Indian traders have cancelled soymeal export contracts and shifted to importing soybeans from Africa as soaring domestic prices disrupt trade flows in one of the world’s largest oilseed markets, trade sources said.
Traders have cancelled about 25,000 metric tonnes of soymeal export agreements the first such cancellations since 2021 while booking roughly 80,000 tonnes of soybean imports from African countries, according to industry sources.
Soymeal, a key livestock feed ingredient produced during soybean oil extraction, has seen sharp price increases in India, making exports uncompetitive and forcing traders to reverse previously agreed shipments.
Domestic soybean prices have surged by around 41 percent in a month to 66,000 rupees per metric tonne, their highest level in four years, driven by tight supplies and lower production.
As a result, soymeal export offers for June shipments have jumped to about $695 per tonne free on board, up from roughly $475 a month earlier, making it difficult for exporters to honour contracts without incurring losses.
According to traders, the cancellations were mutually agreed with buyers and did not involve penalties, a rare occurrence in the global soymeal trade where price volatility is typically more contained.
Industry sources said the price spike has effectively shut India out of new soymeal export deals in the short term, reversing its usual role as a reliable supplier to Asian markets.
At the same time, India’s soybean imports are rising sharply, with traders increasingly sourcing from African producers due to regulatory restrictions that limit imports to non-genetically modified (non-GM) crops.
More Read
Permitted suppliers include countries such as Benin, Niger, Togo and Nigeria, where non-GM soybean varieties attract a price premium in global markets.
Traders said Indian buyers have recently purchased African soybeans at between $700 and $760 per tonne on a cost, insurance and freight (CIF) basis for June and July deliveries.
One trade source said at least 80,000 tonnes of soybeans have already been contracted this month, with additional purchases expected if domestic prices remain elevated.
Vinod Jain, founder of agricultural exporter Suraj Impex, said India is no longer receiving new soymeal export orders due to high domestic prices, forcing a rapid shift toward imports.
India’s soybean imports could reach a record 800,000 tonnes in the marketing year ending September 2026, compared with just 2,000 tonnes in the previous year, according to industry estimates.
Soybean processor Ashok Bhutada said supplies are expected to remain tight until the next harvest season in September and October, sustaining import demand in the near term.
More Read
Analysts say the shift highlights how domestic supply shocks in large agricultural economies can quickly reshape global trade flows, benefiting alternative suppliers—particularly in Africa, where non-GM soybean production is concentrated.
The development is expected to support prices for African exporters, while tightening supplies in global soymeal markets dominated by producers in North and South America.
However, traders warn that volatility could persist if India’s domestic production outlook remains weak or if price gaps between regions widen further, reinforcing the country’s reliance on imports in the short term.
