Amid declining prices of onions and soybeans in India, industry and farmer groups have urged the government to introduce support measures such as reducing onion export duty and providing incentives for soybean meal exports.
Despite an earlier import duty hike of nearly 20% on cooking oils to support domestic soybean prices, soybean rates remain below the minimum support price (MSP), impacting farmers’ profitability. Onion exports have also witnessed a significant 52% decline this year.
Maharashtra Chief Minister Devendra Fadnavis highlighted in a letter dated March 12 to Home Minister Amit Shah that soybean farmers in Maharashtra are facing losses due to the sharp fall in prices. He attributed this to the government’s permission for ethanol production from maize and rice, which resulted in an additional 20 lakh metric tonnes of de-oiled cake (DOC) in the market, further depressing soybean DOC prices.
The Maharashtra government has supported demands for an export subsidy for soybean meal to stabilize the market. Pasha Patel, chairman of the Maharashtra State Agricultural Price Commission, emphasized that export promotion subsidies could provide much-needed relief to struggling soybean farmers.
According to data from the Solvent Extractors’ Association (SEA), oilmeal exports in February 2025 stood at 3.30 lakh tonnes, marking a 36% decline compared to the previous year. The export of soybean meal during the first five months of the oil year (October to September) dropped by 23% to 13.47 lakh tonnes.
Meanwhile, onion growers and exporters have alerted authorities about an estimated 26.5% increase in late kharif onion crop acreage and a 20% rise in rabi onion crop acreage. Industry estimates indicate that India’s onion exports in the first nine months of the 2023-24 season were nearly 52% lower compared to the corresponding period in 2022-23.
Farmers and trade groups are urging immediate intervention to prevent further losses and stabilize market conditions.