India's Ethanol Expansion Tightens Soybean Feed Supplies Amid Shift to Corn
India's ethanol expansion is having a ripple effect on crop competition in the country. With more acreage shifting towards corn, soybean production has fallen by 8% to 9.6 million metric tons for the 2026/27 season, according to forecasts from the USDA Foreign Agricultural Service in New Delhi.
The shift towards corn is partly due to government support prices being tied to ethanol-blending goals. As a result, corn acreage has expanded, while soybean production and crush have declined. This has led to a tightening of soybean meal supplies, which are expected to remain constrained for feed buyers.
Industry sources say that feed costs have climbed by over 45%, with soybean meal prices up by 22%. Poultry producers have reportedly reduced output by around 20% due to deteriorating margins. The USDA expects the supply of soybean meal to remain tight, leading to a focus on alternative ingredients and changing crop economics.