Short supply lifts soyabean prices
| Date :13-Nov-2019 |
Business Bureau :
This year the production of soyabean has drastically come down due to which the prices are expected to shoot up in the market. “It is anticipated that the prices of soyabean will surge this year due to short supply and good demand. It is estimated that there is a drop in production of about 20 per cent to 25 per cent as compared to previous years production,” said Ashwin Jethani, Director of A D Commodities, Itwari while speaking to The Hitavada. He said that most traders are expecting the prices of soyabean to increase due to shortfall in production compared to last season. Heavy rainfall has severely damaged the crop in Madhya Pradesh which is the largest soyabean producing State in the country.
The soyabean is being quoted at Rs 3,900 to Rs 3,950 per quintal (ex-plant). He said, this seasons crop has arrived late as the rains were delayed by one month. Normally, the sowing activity is completed by June 10. But this season, maximum sowing took place in the month of July. The new crop has arrived at the APMC, Kalamna marketyard. On a daily average about 6,000 to 7,000 bags (each bag weighing about 95 kg to 100 kg) are being unloaded at the Kalamna market. Last year on an average 10,000 to 12,000 bags were being unloaded in the market. Government has set the minimum support price (MSP) at Rs 3,710 per quintal higher compared to last season’s MSP at Rs 3,399 per quintal.
According to Government data, this year the land under soyabean cultivation was 1.14 crore hectares as against the previous year’s 1.13 crore hectares, Jethani said. The export of de-oiled cake (DoC) for the month of October was at 24,740 tonne as compared to 1,50,388 tonne during the same period in 2018. The exports have witnessed significant drop compared to last year, he said. In has been anticipated that the production of soyabean crop in the US will drop 3 per cent to 4 per cent compared to the previous year. Accordingly, the prices in US have already climbed higher and the average price for October is being quoted at $439 per tonne compared to last years average price of $357 per tonne, he said.
Despite the fact that the US is the largest soyabean producer in the world, it is estimated that this year’s soyabean production will fall to 96.62 million tonne compared to last year’s production of 98.87 million tonne, he said. According to estimates by Soyabean Processors Association of India (SOPA) this year’s estimated production in India will be 89.94 lakh tonne lower compared to last year’s production of 109.33 lakh tonne, a drop of 17.74 per cent. Also, the production per hectare this year is estimated to be at 836 kg per hectare compared to the previous year 1,009 kg per hectare, he added.