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India Soybean Meal Consumption Tempered by Ethanol Expansion
13.06.2025 12:29 "Agro Perspectiva" (Kyiv) —
According to the report of the USDA Oilseeds: World Markets and Trade (June 2025), this month, India soybean meal consumption was revised down for marketing years 2024/25 and 2025/26 due in part to increased utilization of DDGS (dried distiller grain solubles). In the past couple of years, DDGS production in India has significantly increased as a result of changes in the National Biofuels Policy E20 mandate. In May 2022, the implementation of E20 was expedited from 2030 to 2025 targeting 15 billion liters of ethanol production capacity for 2025. Sugarcane is the primary feedstock utilized to achieve the mandate, but corn utilization has significantly increased over the past 2 years. India’s production of corn DDGS has risen as a result of expanded ethanol production, causing many feed producers to partially substitute DDGS in place of soybean meal due to lower cost. Based on Indian export data, soybean meal unit values were $416/ton in March 2025, compared to $225/ton for DDGS. The rapid mplementation of India’s ethanol policy is expected to hold soybean meal consumption flat in 2024/25. In 2025/26, soybean meal consumption is expected to increase in line with slower growth in DDGS supply due to the ethanol mandate nearing target levels. Lower domestic soybean meal consumption has led to an uptick in exportable supplies. Therefore, India soybean meal exports are raised this month to 1.8 million tons in 2024/25 and 1.4 million in 2025/26. So far in 2024/25, India soybean meal exports have primarily been shipped to the EU, Bangladesh, and Nepal.
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