India has cancelled soymeal export contracts and turned to soybean imports for the first time in nearly five years as domestic prices surge amid tightening supplies, according to a Reuters report.
Indian traders reportedly cancelled nearly 25,000 metric tonnes of soymeal export contracts for May and June shipments after a sharp spike in local soybean prices made overseas commitments financially unviable.
Trade sources told the publication that domestic soymeal prices surged nearly 41% within a month, touching around Rs 66,000 per metric tonne — the highest level seen in four years.
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The sudden rally has significantly altered India's trade dynamics in the soybean sector.
Traditionally an exporter of soymeal to Asian markets, India is now importing soybeans from African countries to address domestic shortages.
Traders have already booked around 80,000 tonnes of soybean imports for June and July deliveries, with prices ranging between $700 and $760 per tonne on a CIF basis, the report said.
Industry experts cited poor domestic soybean production and tight inventories as the key reasons behind the supply crunch.
Elevated prices have also reduced India's competitiveness in the global soymeal market, with export offers jumping to nearly $695 per tonne from around $475 a month ago.
Vinod Jain, founder of agricultural exporter Suraj Impex, told Reuters that India could import a record 800,000 tonnes of soybeans during the current marketing year ending September 2026, compared to just 2,000 tonnes imported last year.
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Market participants expect soybean supplies to remain constrained until the arrival of the new crop in September-October, forcing processors and traders to increasingly depend on imports to stabilise the domestic market.
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