Although there has been a rich soybean harvest this year, the arrival of soybean in the market has fallen. This has been attributed to the holding back of the produce by farmers in anticipation of a higher return. As a result of the drop, production has declined and so have the exports.
Rajesh Agarwal, spokesperson and coordinator, Soybean Processors' Association of India (SOPA), said, "The market availability of soybean is 25 per cent less than the last year, consequently hampering the soyabean processing industry and thus the exports."
Owing to the low availability and prices, everyone has incurred losses. Major soybean processing companies in India, such as Adani, Ruchi, Wilmar and ADM Agro Industries Dharwad Pvt Ltd, are now producing soyabean oil in lower capacities.
The total arrival of soyabean till December was in the range of 40-45 tonnes, against 55-60 lakh tonnes in the corresponding month a year ago. Currently, soyabean prices are around Rs 3,175-3,300 per quintal. India is a major soybean exporter to countries like Japan, Thailand and the Middle-Eastern countries.
The industry crushed about 25 lakh tonnes between October and December, about 25 per cent lower than the corresponding quarter last year. “In the coming days, the price of soybean is expected to remain the same, though it seems to be more bearish then bullish,” Agarwal said.
