NEW DELHI, INDIA — India has set stock limits on soybean meal from Dec. 23, 2021, to June 30, 2022, in an attempt to check rising domestic prices, according to a report from the Foreign Agricultural Service of the US Department of Agriculture (USDA).

For plants, millers, and processors, the maximum allowed stock is 90 days of production, as per their daily input production capacities.

For trading companies, only government registered enterprises are eligible to stock soymeal, with a maximum stock limit of 160 tonnes with a defined and declared storage location.

Imposing stock limits likely will prevent hoarding and ensure product availability for domestic crushers, according to trade and industry associations. Soybean processors do not typically stock soymeal because of high price economics.

With domestic soybean production estimated at 11.9 million tonnes, it is unclear how stock limits on soymeal, as opposed to soybeans, will ensure price correction, the USDA said, and maintain availability for compound feed manufacturers.

“Imposing stock limits on soymeal may reduce crushing, which in turn would lead to higher soybean availability and potentially keep soybean prices in check,” the USDA said.

Domestic prices from September-December 2021, ranged from $706 to $892 per tonne, compared to the minimum support price of $526 per tonne. In the same time period, soymeal prices ranged between $693 to $799 per tonne.

A bumper crop in Brazil arriving in February 2022 may result in global price moderation, the USDA said. India’s various poultry industry associations have welcomed the move. Domestic poultry companies have been the most affected by rising animal feed prices.