Soya DOC crisis threatens Indian poultry industry? Explosive increase in feed prices

LALIT LANJEWAR (NAGPUR):

 A big challenge for the government The Indian poultry, animal feed and animal husbandry industry is facing an unprecedented crisis, and the entire feed industry is worried due to the increase in soybean meal (DOC) prices in the last few weeks. According to industry experts, if the government does not intervene immediately, the poultry industry may face a serious financial crisis in the next few months. 

More than 35 percent price increase in a month; Increase on the threshold of 40 percent From April 8, 2026 to May 8, 2026, the price of soybean meal (DOC) went straight from about ₹52 to ₹55 per kg to ₹70. This has registered an increase of more than 35 percent in a month, and there are fears that this increase is heading towards 40 percent. 

The price of DOC has also increased significantly in the international market, from US$ 0.59 per kg to US$ 0.74. This means that the global market has also increased by more than 25 percent. 

Along with soy DOC, the prices of other protein-rich raw materials, maize, de-oiled rice bran (DORB) and other feed ingredients have also increased rapidly. This has started to disrupt the financial calculations of feed manufacturing companies as well as poultry farmers. 

Three-year high; Unprecedented boom in soybean market

 The Indian soybean market is witnessing the highest boom in the last 36 months. Soybean prices have reached ₹6500 to ₹7500 per quintal in major markets. The mill delivery rate in Latur and Kota areas of Rajasthan has gone up to ₹7500 per quintal, creating an atmosphere of concern among traders and the feed industry. 

Traders are buying in large quantities as prices are continuously increasing in the market. There is talk of hoarding and instability in the market due to fears that prices will increase further in the coming period. The market is continuously moving upwards due to high demand and limited supply. 

Main reasons behind the price hike

 1) Decline in domestic production: The government estimates that India's soybean production will fall from 15.26 million tonnes to 12.72 million tonnes in the 2025-26 season. According to industry associations, this production could come down to 11 million tonnes.

 2) Low availability and limited arrivals: The availability of soybeans in the market has decreased and arrivals are also limited. Due to this, prices are getting a lot of support. 

3) Growing demand for DOC: The demand for DOC has increased significantly in the poultry, dairy, fisheries and animal feed industries. Export demand has also remained strong, which has created additional pressure on supply. 

4) Speculative buying increased: The possibility of further price hike has led to large-scale buying by traders, increasing market volatility.

 Alarm bell for poultry industry In the poultry industry, feed costs account for 65 to 70 percent of the total production cost. Since soy DOC is the main protein source, the price hike is directly affecting the egg, chicken, animal feed and fish farming industries.

 While small and medium poultry producers are already operating at low profit margins, this increase could bring them to the brink of financial crisis. 

Demand for import of GM soybean meal As the situation is becoming serious, national and state-level poultry associations have demanded immediate permission from the central government to import 1.5 million metric tonnes of GM soybean meal. 

The industry says that there are still about five months left for the new crop to enter the market. If proper measures are not taken during this period, the feed supply chain could be seriously affected.

 Notably, the government had also approved the import of 1.2 million metric tonnes of GM soybean meal in 2021. That helped stabilize the feed market at that time. 

Opposition to SOPA 

On the other hand, the Soybean Processors Association (SOPA) has opposed the import. According to the organization, domestic stocks are sufficient, and local farmers are likely to get lower prices if they import. 

However, the question for the poultry industry is clear — how will the poultry industry survive if feed is not available? 

The challenge before the government to maintain balance 

The government now faces a big challenge of taking urgent decisions while maintaining a balance between farmers, processing industries, the poultry sector and consumers. Otherwise, the possibility of an increase in egg and chicken prices, shortage of feed and a major impact on the rural economy cannot be ruled out in the coming days.

 This is not just a matter of fluctuations in the commodity market, but has become a serious issue related to the country's protein-based food chain and animal feed security.