The Hindu Business Line : Soya trade on recovery path with high output, returns

Workers at Chawni Mandi in Indore, Madhya Pradesh, filling gunny bags with soyabean after weighing them. Soyabean arrivals have peaked and are bought off in doubly quick time from the markets. — M.R. Subramani

Recently in Indore

THE soyabean industry is on the path to recovery, thanks to increased production and productivity besides higher prices.

"There is a feel good factor all around the industry. Production is up and prices are higher because of fall in the US prices," Mr Rajesh Agrawal, Chairman, Soyabean Processors Association of India, told Business Line.

Soyabean production this year is projected at 68.5 lakh tonnes (lt) by SOPA and over 71 lt by the Centre. Last year, the production was 43 lt. Of this, a major portion between 42 and 50 lt is expected from Madhya Pradesh, the country's soyabean hub.

Soyabean prices are currently quoted at Rs 1,340-1,360 a quintal, up nearly Rs 100-140 over last year.

"The processing sector is also in a healthier position now because of the overall rise in crop size. This will ensure longevity in crushing and improve margins," Mr Agrawal said.

Currently, while processors pay Rs 13,500 a tonne for soyabeans, they get about Rs 11,400 a tonne for soyameal and around Rs 420 for refined soyabean oil.

"The margins are better around Rs 1,500 now," say industry players.

Of the around 80 processing units, nearly 30 had been closed in Madhya Pradesh. But thanks to the good crop and improving situation, 10 of them have resumed operations.

"Another five units will soon resume operations," Mr Devi Prasad Khandelia, President, Central Organisation for Oil Industry and Trade, said during the all-India convention on oilseeds last week.

"All segments of soyabean industry are up and working," industry players said.

According to Mr Agrawal, this could help the industry face next year with hope. "The good prices despite rise in production will lead to increase in the area under soyabean next year," he said.

Farmers too support this theory. Some of the farmers in and around Indore say they could go in for an increase in area under soyabean next year.

Madhya Pradesh Agriculture Department officials say they are witnessing a shift to the oilseeds from other crops such as grains and pulses due to good prices.

"Not only will there be increase in area but also the good prices will force farmers to go in for better seeds and crop inputs," industry players say.

According to Mr Agrawal, in view of good monsoon coverage, there has been a 25 per cent average rise in soyabean productivity. From around 900 kg per hectare, the productivity has increased to 1.2 tonnes in many places.

"Our association had carried out extensive extension work and, as a result, productivity in many areas is around 1.5 tonnes," Mr Agrawal said.

In fact, productivity of some farmers, who won awards instituted by SOPA, was around three tonnes, with the highest being 3.8 tonnes.

The good effect of soyabean crop has now begun reflecting on preparations for the rabi crop with farmers going in for better seeds and crop inputs.

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