India’s soyabean acreage is expected to increase by up to 10% this year as four-year-high prices and forecasts of below-normal monsoon rainfall due to El Nino encourage farmers to shift from water-intensive crops such as sugarcane and corn to the oilseed, according to farmers and industry officials quoted by Reuters.
Price Incentives
Soyabean prices climbed to ₹7,587 per 100 kg last month, a four-year high, well above the government’s support price of ₹5,328, Reuters reported. In contrast, corn prices remain below the floor price of ₹2,400. "Farmers switched from soyabean to corn last year. But with soyabean offering better returns than corn, many are expected to shift back to the oilseed this season," said Manoj Agrawal, managing director of Maharashtra Oil Extractions, a soyameal producer and exporter.
| Commodity | Current Price (₹/100 kg) | Government Support Price (₹/100 kg) |
|---|---|---|
| Soyabean | 7,587 | 5,328 |
| Corn | Below 2,400 | 2,400 |
Acreage and Crop Shift
Farmers planted soyabeans on 12 million hectares in 2025, and industry officials expect the area to rise by up to 10% this year. The higher acreage is also driven by a weak monsoon outlook. The farmers usually begin planting summer-sown crops in June with the arrival of monsoon rains, which are expected this year to be the weakest in 11 years due to the emergence of the El Nino weather pattern.
Monsoon and Water Concerns
Concerns over rainfall have increased the appeal of soyabeans, which require less water than corn and sugarcane. "We usually grow sugarcane, but since there is a forecast of less rain, we are planning to grow soyabeans this time because they need much less water than sugarcane," said Manoj Kale, a farmer based in Solapur in Maharashtra.
Yield and Production Risks
Soyabean acreage is likely to rise, but rainfall during the monsoon will be key in determining yields, said D.N. Pathak, executive director of the Soybean Processors’ Association of India (SOPA). India’s soyabean imports are expected to rise to a record 900,000 tonnes this year, driven by lower production last year.
Trade and Domestic Impact
Soyabean is India’s main summer-sown oilseed crop, and higher output will help the world’s biggest importer of edible oils to cap overseas buying of palm oil, soyaoil and sunflower oil. It will also ease domestic soyabean and soyameal prices, benefitting India’s poultry industry, the largest consumer of soyameal. "Soyabean oil imports have been rising in recent years, and higher production is expected to help curb imports," said a Mumbai-based dealer with a global trade house. India buys palm oil mainly from Indonesia and Malaysia, while it imports soyaoil and sunflower oil from Argentina, Brazil, Russia and Ukraine.
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