Quality issue continues in the spot market leading to lower availability of good quality soybean. Stockiest are selling the soybean at a premium. On the other hand, Soymeal demand is low in the international market due to higher domestic price. Higher global supply expectation in the quarter Feb-Apr can keep the upside limited in prices
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Cultivation of soybean in India was first started in Punjab and UP in 1969. But farmers did not take interest in its cultivation as the per acre production was low due to high moisture contents there.
On the other hand it became a popular crop in MP as most of its cultivated area is rain-fed and availability of irrigation water is comparatively very less. Its production had been increasing year after year in the country as it continues to fetch lucrative prices to the farming community.
Yield of soybean in India still lags behind from its major producers in the world however Indian soybean is considered best in quality due to its Non GMO nature and rich protein content. Thus export demand is usually very high of Indian soy DOC.
Soybean is mainly produced in MP, Maharashtra, Rajasthan, AP, and Karnataka.
MP is the main soybean producing state in India. With onset of monsoon in mid June soybean’s sowing starts and fresh arrivals are seen from October. In 2006-07, total production was nearly 47 lakh ton while during 2007-08, production was nearly 50 lakh ton. It is expected to increase to 57 lakh ton during 2008-09 as per sources.
It is second largest producing state in India. The production is mainly near Konkan area. Markets start receiving arrivals in September due to early sowing in May month in Satara, Kohlapur and Solapur by September. These areas have good irrigation facilities. But sowing in other areas depends on rains due to lack of irrigation facilities. During 2006-07, around 24 lakh ton soybean was produced and in 2007-08, total production was nearly 32 lakh ton. In 2008-09, production is expected to be ~ 36 lakh ton.
Rajasthan is the third largest soybean producing state. During 2006-07, around 5 lakh ton soybean was produced and in 2007-08, total production remained nearly 7.50 lakh ton. In 2008-09, the production which was earlier expected to remain nearly 10 lakh ton has now been lowered to nearly 8 lakh ton. The growing areas are Kota, Bundi, Baran, Bhilwara, Jhalawar and Chittorgarh districts. All areas are dependent on rains. Sowing starts in June with the first monsoon rains. And arrival starts in mandis in October.
AP’s contribution to the India’s total production is very low. Around 1 lakh ton soybean was produced in 2006-07 which increased to 1.40 lakh ton during 2007-08. With an up side movement in production figure, AP is expected to produce around 1.70 lakh ton soybean this year. June is the sowing time and October is the arrival time. Nizamabad, Adilabad and Kareemgunj are the main producing areas.
During 2006-07, around 1.50 lakh ton soybean was produced here. In 2007-08, the production increased by nearly 20000 ton and reached ~1.70 lakh ton. But an expected low sowing figure is likely to reduce it during 2008-09. Dharawar, Bijapur, Belgaon and Averi district are the main producing areas. Sowing starts during May to June here and arrivals start by September.
A few other states also contribute in the production at ~2 lakh ton.
Soybean has only 17-18% oil content. In trading, major price guiding factor is soybean meal. Most of meal is exported to big nations. Moreover, Doc demand also finds its way from Asian countries regularly. But this year its export is expected to be lower than last year.
During same period last year deals of nearly 16 lakh ton had been done, while this year it has even not crossed the level of 6 lakh ton figure. Indian soybean is rich of protein compared to other producing nations. During 2007-08, India produced nearly 95 lakh ton soybean which is expected to see a jump to around 108 lakh ton in 2008-09.