Soyabean production this season ending June has been projected at a record high of 126.76 lakh tonnes on higher planting of the oilseed and better yield by the Soyabean Processors Association of India.

Rise in Madhya Pradesh

The oilseed output may rise by eight per cent in Madhya Pradesh, the largest grower, while it may inch up marginally in Maharashtra.

However, production may shrink in Karnataka and Rajasthan marginally because of scanty monsoon.

“Production will be at a record high this year and the harvest is progressing well,” said Rajesh Agarwal, spokesperson for SOPA (Soyabean Processors Association of India).

Arrivals

In Madhya Pradesh, arrivals are estimated at 70,000 bags a day and will touch over one lakh bags next week.

Prices

However, prices have crashed in recent months to around Rs 3,250 a quintal in the major market of Indore on expectations of record crop and due to the pressure exerted by global glut in crude palm oil.

Soyabean prices had more than doubled in the past one year to touch a record high of Rs 4,900 in the third week of July on tight global supplies as drought in the US, Brazil and Argentina, hurt the crops.

However, prevailing prices are way above the minimum support price of Rs 2,240.

Agarwal expects the price pressure to remain in the short-term on global cues and strengthening rupee.

Acreage

The crash in prices is likely to prompt the farmers to hold back their produce.

Farmers had planted soyabean on a record area of 106 lakh hectares this year against 102 lakh hectares last year.

Despite the dry spell affecting the crop in the Kolhapur and Sangli belt of Maharasthra, the State continues to lead in terms of yields at 1.4 tonnes a hectare.

In Madhya Pradesh, the yields are pegged at over 1.1 tonne a hectare and Rajasthan at 1.25 tonnes a hectare.

SOPA’s projections are in line with the Government’s first advance estimates which pegged the crop at 126.19 lakh ha.

> vishwanath.kulkarni@thehindu.co.in

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