The market is witnessing the dramatic hike at a time when the country’s annual production in the current season is recorded between 110 lakh tonne and 115 lakh tonne which the industry experts find normal Business Bureau : Soybean prices have been witnessing high volatility for the past few months even as its production in the country remained intact. From Rs 3,900 per quintal in October 2020 to Rs 5,000 per quintal mark posted in January this year, the commodity has seen its highest ever price level of Rs 8,000 per quintal in mid April (this year) and then it slipped marginally to come down to Rs 7,300 on Thursday.
The market is witnessing the dramatic hike at a time when the country’s annual production in the current season is recorded between 110 lakh tonne and 115 lakh tonne which the industry experts find normal. It is important to note that the price hike happens when most of the soyabean growing farmers had sold the commodity. When the farmers sold soyabean to traders and oil extractors between October and early December (in 2020), the prices were hovering between Rs 3,900 and Rs 4,500 per quintal. Sources told The Hitavada that the farmers were not benefited by the price rise. “Actual rise came in when the commodity was in possession of big traders and oil extractors which indicates that the prices were inflated artificially,” they said. Sources also alleged some of the big buyers indulging in cartelisation. “These big players appeared to have joined hands to manipulate soyabean prices.
They are the ones who aggressively bought the commodity on the commodity exchange which created heavy demand,” the sources added. It is worth mentioning here that the Solvent Extractors’ Association (SEA) has also alleged speculative increase in soyabean prices. Commenting on the price rise, Amit Jain of Abis Exports India Private Limited said that heavy buying of soyabean was seen in the commodity market from January to April which pushed up the prices. The impact of the price rise is clearly reflected in the pricing of soyabean oil and soyabean DOC (De Oiled Cake). The soyabean oil price in the city market was quoted at Rs 145 per litre to Rs 150 per litre, a level roughly 60 to 70 per cent up as compared to its price in the last season. Last year (in March), soyabean oil was available at a price of Rs 90 per litre to Rs 100 per litre.