
India is considering draft rules that would prohibit food crops, including corn, soybeans and palm oil, as feedstocks for sustainable aviation fuel. The proposal favors used cooking oil, animal fats and agricultural residues, while setting out traceability requirements and a proposed guaranteed-price system to encourage SAF investment.
A restriction on crop-based aviation fuel would limit a potential source of demand for corn, soybeans and vegetable oils, though the immediate effect depends on the policy’s final form and SAF capacity. The planned procurement support may stimulate SAF production using alternative feedstocks instead.
After 310 past bearish policy events, Corn moved a median +0.3% over 5 sessions (54% higher; middle half -1.4% to +1.9%), and +0.6% over 20.
After 369 past bearish policy events, Soybeans moved a median -0.2% over 5 sessions (46% higher; middle half -1.7% to +1.8%), and +0.8% over 20.
After 351 past bearish policy events, Soybean Oil moved a median -0.0% over 5 sessions (49% higher; middle half -1.7% to +1.8%), and -0.2% over 20.
After 400 past bearish policy events, Palm Oil moved a median -0.0% over 5 sessions (49% higher; middle half -1.3% to +1.1%), and +0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.