Major Poultry, Livestock and Aqua Associations Seek Government Intervention Over Soybean Meal Supply Crisis
India’s poultry, dairy, livestock, fisheries and aquaculture sectors are facing serious pressure due to the rising cost of soybean meal, a key protein ingredient used in animal feed. Industry representative Mr. Ricky Thaper has said that major poultry, livestock and aqua associations have requested urgent government intervention to stabilize soybean meal supply and protect farmers from increasing feed costs.
Thank you for reading this post, don't forget to subscribe!According to the Government of India estimate released by the Press Information Bureau on March 10, 2026, soybean production for 2025 to 2026 is projected at 12.7 million tons. This reflects a decline of around 17 percent compared with the 2024 to 2025 government reported production of 15.1 million tons.
The decline in soybean output has created a shortage of soybean meal in the market. Soybean meal is one of the most important protein sources for poultry feed, dairy feed, fisheries feed and aqua feed. The shortage has pushed prices upward on a daily and weekly basis, creating panic among poultry farmers, dairy farmers, aqua farmers and fish farmers.
The feed industry is also facing difficulty in absorbing the rising cost of raw material. As feed becomes expensive, the cost of production for eggs, chicken, milk, paneer, curd, fish and shrimp is also increasing. This situation is directly affecting farmers, consumers and the rural economy.
Mr. Ricky Thaper said that a similar crisis was witnessed during 2020 and 2021, when shortage of soybean meal had badly affected the animal feed and poultry sectors. At that time, the Government allowed the import of 1.2 million metric tons of GM soybean meal, which helped the industry manage the crisis.
To address the current situation, poultry, dairy and aqua industry associations have requested the Ministry of Commerce and the Ministry of Animal Husbandry to take immediate measures.
Industry Proposes Market Linked Import Policy
The associations have recommended the implementation of a market linked import mechanism to protect both soybean producing farmers and poultry, dairy and aqua farmers.
Under this proposed system, if the market price of soybean rises more than 25 percent above the Minimum Support Price or crosses Rs. 6,660 per quintal, permission for the import of GM soybean meal should be automatically granted.
According to the industry, this mechanism would create balance between producer farmers and consumer farmers. It would help soybean growers receive better returns while also preventing extreme pressure on livestock and poultry farmers who depend on soybean meal for feed.
Demand for Stock Limits and Market Monitoring
The associations have also requested the implementation of stock limits for warehouses and stock locations in major soybean producing and trading states, including Maharashtra, Madhya Pradesh, Rajasthan and Andhra Pradesh.
They have urged that stockists should report their soybean and soybean meal stocks to the authorities on a daily and weekly basis. According to the industry, proper stock reporting and monitoring can help control artificial shortage, hoarding and abnormal price increases.
The associations said that delays in enforcing stock limits have allowed market pressure to increase, which is contributing to the ongoing price surge.
Request for Import of 1.5 Million Tons of GM Soybean Meal
The industry associations have requested the Government to permit the import of 1.5 million tons of GM soybean meal as a temporary measure until the arrival of the new soybean crop in October.
According to the proposal, after payment of duty, the landed price of soybean meal would be around Rs. 62,500 per metric ton. The industry believes this would help stabilize soybean meal prices without harming Indian soybean farmers, as soybean seed prices would still remain above the Minimum Support Price declared by the Government of India.
The associations also stated that this measure could generate approximately Rs. 450 crore in revenue for the Government of India through duties. At the same time, soybean farmers may continue to receive 25 to 30 percent higher prices than the government declared MSP on soybean seed.
Feed Cost Pressure May Affect Poultry Production
The industry has warned that there are still around five months before new crop supplies arrive. Without immediate intervention, poultry production may contract due to high feed input costs.
A reduction in poultry production could further increase prices of eggs and chicken, adding pressure on consumers and contributing to food inflation. The crisis may also affect rural employment, farmer income and the overall protein supply chain.
Mr. Ricky Thaper said that temporary and carefully planned government measures are necessary to stabilize feed markets, protect lakhs of poultry farmers and safeguard livelihoods across rural India.
He added that industry associations are hopeful that the Hon’ble Minister will give urgent consideration to the matter and take early action in the larger national interest of protein affordability, food security and stability in the poultry, livestock and aquaculture sectors.