India: Oilseeds and Products Update

India’s soybean production estimate for marketing year (MY) 2020/2021 (October-September) is revised upward to 11.8 million metric tons (MMT) on account of higher acreage and better than expected yields. Likewise, peanut production is also revised upward to 7 MMT due to good monsoon performance in August and September in Gujarat. The Indian government’s decision to allow for imports of soybean meal (for a temporary period) was partially successful in checking soaring soybean and animal feed domestic prices. Soybean meal imports between August to mid-November period stood at 0.65 MMT. India’s poultry industry associations are now petitioning the government to extend the timeline until March 31, 2022, to fulfil their quotas. Successive revisions in import duties for palm oil have helped increase the share of palm oil to 63 percent in India’s edible oil basket, compared to 55 percent last year.