Sharp decline in soyabean production; exports take a hit

AJ Vinayak Mangaluru | Updated on October 27, 2020

For 2019-20, output has declined by 15 per cent to 93 lakh tonnes   -  Bloomberg

Domestic prices, consumption up

Decline in the production of soyabean during October 2019-September 2020 has resulted in limited availability of seeds for crushing and lower soyameal production during the year, if the estimates by Soybean Processors Association of India (SOPA) are any indication.

However, high prices in the domestic market seems to have brought down the export of soyameal during the year. SOPA’s latest estimates for full oil year 2019-20 (October 2019 to September 2020), sees the all-India crop at 93.06 lakh tonnes (lt) as against 109.33 lt in the corresponding period of the previous oil year, recording a decline of 14.88 per cent.

Other factors such as carryover stock, import and new crop took the total crop size to 101.76 lt (112.63 lt) during the period. Of this, 12 lakh tonnes of soyabean were retained for sowing.

To a query on crushing during the year, DN Pathak, Executive Director of SOPA, told BusinessLine that the production was less during the year leading to a decline in crushing during the period.

Availability of the bean came down from 93.50 lt in 2018-19 to 81.50 lt in 2019-20 — down by 12.83 per cent.

Soyameal exports suffer

The production of soyabean meal also came down by 13 per cent to 65.71 lt (75.74 lt) during October 2019 to September 2020.

Though the domestic consumption of mealincreased, shipments were down by 62 per cent during the period to 8.25 lt (21.79 lt).

Vinod TP, Senior Analyst at Geojit Financial Services Ltd, said the fall in soyameal exports was largely due to higher domestic prices compared to international markets. The rise in global stocks on back of US-China trade war, rise in output in Brazil and Argentina led to a fall in international prices, which, in turn, got a competitive advantage for these Latin American countries for cheaper availability of meals in the global markets.

Back home, domestic soyabean prices had increased on hike in MSP for soyabean and continuous rise in domestic demand.

Data compiled by the Solvent Extractors’ Association of India pegged the export of soyameal at 3,17,915 tonnes (3,63,901 tonnes) during the first half of the financial year 2020-21.

Published on October 27, 2020

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