NEW DELHI, INDIA – India’s ethanol expansion is reshaping crop competition, with more acreage shifting toward corn as soybean production falls and feed costs rise for livestock producers. USDA Foreign Agricultural Service staff in New Delhi say the changes are tightening soybean meal supplies.
India’s 2026/27 soybean production is forecast at 9.6 million metric tons, down 8% from the previous estimate. Harvested area is projected at about 25.9 million acres as erratic monsoon rainfall and stronger returns encourage shifts toward cotton and corn.
Corn acreage has expanded partly because government support prices are tied to ethanol-blending goals. Lower soybean output is expected to reduce crush and soybean meal production, tightening protein-feed availability.
Industry sources cited by the report say feed costs have climbed more than 45%, while soybean meal prices are up 22%. Poultry producers have reportedly reduced output by roughly 20% as margins deteriorated.
USDA expects soybean meal supplies to remain constrained, keeping feed buyers focused on alternative ingredients and changing crop economics.
Farm-Level Takeaway: India’s ethanol-driven corn incentives are strengthening acreage competition while tighter soybean supplies raise feed costs.