Soybeans market in Southern Asia

Earlier Report Observations

The soybean market volume in Southern Asia, dominated by India, showed overall growth from 2018 to 2022, rising from 19.4 million tonnes to 21.1 million tonnes, before contracting to 18.2 million tonnes in 2023. This expansion was initially supported by global demand for protein-rich products, which sustained import levels even when domestic production faced weather-related setbacks. However, the market was periodically affected by supply-side constraints, such as excessive rainfall and pest attacks in key growing states during 2020, which pressured local yields and contributed to price volatility.

Supply disruptions, both domestic and international, became a recurring theme, culminating in soybean prices reaching a peak in May 2021. These factors, alongside ongoing global demand dynamics, helped maintain market volume growth through 2022. The trend reversed in 2023 as structural challenges within the domestic soybean sector emerged more clearly. A significant rise in soybean oil imports by India, surging 51% in the first quarter of the 2024 marketing year, indicated strong domestic consumption needs but also highlighted supply limitations that contributed to a drop in the overall bean market volume.

By 2024, strategic import management to meet oil demand became more pronounced, with soybean oil imports increasing 76% between October 2023 and February 2024. Concurrently, competitive global prices led to a rise in soybean meal exports. Domestic prices for farmers fell below the government's Minimum Support Price by approximately 17%, reflecting ongoing market pressures and the complex interplay between local production, consumption, and trade policies.

Production soybeans in Southern Asia

In kind, 2017-2020, K t

Top producers of soybeans, 2017-2020

World map of production of soybeans, 2017-2020

In 2020, Southern Asia produced 12,948 K t of soybeans, marking a 12.1% increase from the previous year. Over the period from 2017 to 2020, production grew by 15.5%, with a compound annual growth rate (CAGR) of 4.9%. The highest production level was recorded in 2018 at 13,557 K t. In 2019, production saw its largest decline of 14.8%, while the largest increase occurred in 2018 with a 20.9% rise.

Annual dynamics of production in Southern Asia in kind, 2017-2020, K t

Exports soybeans from Southern Asia

Exports in kind, K t

In 2020, Southern Asia exported 0.3 K t of soybeans, which represents a 63.5% decrease compared to the previous year. From 2017 to 2020, exports fell by 58.1%, translating to an annualized decline of 25.2%. The peak export volume was recorded in 2019 at 1 K t, with the largest increase of 17.6% also occurring in that year.

Annual dynamics of product's exports from Southern Asia in kind, 2017-2020, K t

Between 2017 and 2020, the structure of soybean exports in kind was diversified. Japan accounted for 21.0% of exports, Iraq for 12.3%, and Oman for 6.6%, together making up 39.9% of total flows. No single country held a clearly dominant position in the export market.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Southern Asia in kind, 2017-2020

Exports in value, M $ US

In 2020, the value of soybean exports from Southern Asia reached 0.3 million US dollars, a 48.0% drop from 2019. Over the 2017-2020 period, exports decreased by 51.8%, with a compound annual growth rate (CAGR) of -21.6%. The largest increase was recorded in 2019, with a 57.0% rise.

Annual dynamics of product's exports from Southern Asia in value, 2017-2020, M $ US

From 2017 to 2020, the country breakdown of soybean exports in value terms remained scattered. Japan and Iraq each accounted for 14.9% of exports, while the United Arab Emirates contributed 9.2%. Together, these three partners represented 38.9% of total flows, with no single country emerging as clearly dominant.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Southern Asia in value, 2017-2020

Imports soybeans to Southern Asia

Imports in kind, K t

Soybean imports into Southern Asia increased for the third consecutive year. In 2020, the region imported 6,699 K t of soybeans, up by 2.5% from 2019. Between 2017 and 2020, imports grew by 35.9%, equating to an annualized increase of 10.8%.

Annual dynamics of product's imports to Southern Asia in kind, 2017-2020, K t

During the 2017-2020 period, three principal markets—the United States, Brazil, and Switzerland—together accounted for 70.8% of total soybean imports in kind to Southern Asia.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Southern Asia in kind, 2017-2020

Imports in value, M $ US

In 2020, the value of soybean imports into Southern Asia reached 2,785 million US dollars, reflecting a 10.6% increase compared to 2019. Over the 2017-2020 period, imports rose by 21.4%, with a compound annual growth rate (CAGR) of 6.7%. The largest decline occurred in 2019 with a 4.6% drop, while the largest increase was in 2018 with a 15.1% rise.

Annual dynamics of product's imports to Southern Asia in value, 2017-2020, M $ US

From 2017 to 2020, the United States, Brazil, and Switzerland were the main markets for soybean imports in value terms, accounting for 37.1%, 18.7%, and 13.6% of imports, respectively. Together, they made up 69.4% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Southern Asia in value, 2017-2020