Soybean output declines to lowest in 11 years

Scenario looks grim for this year's crop too, due to delay in monsoon rain; farmers await even distribution of rainfall to start sowing

India’s soybean output is estimated to have declined to its lowest in 11 years in the crop year 2015-16 (July–June), following two consecutive years of drought that resulted in crop damage and a steep fall in yield.

Data compiled by the apex industry body, the Soybean Processors’ Association (SOPA), showed India’s soybean output at 7.54 million tonnes in crop year 2015-16, compared with 10.37 million tonnes in 2014-15, a decline of nearly 27 per cent.

Faced with a sharp decline in output last year, soybean farmers this year eagerly await the monsoon to advance evenly throughout the country to start sowing for timely harvesting of the oilseed.

“Soybean output was lower last year due to drought in major growing regions. Apprehensions about the monsoon rainfalls remain due to two weeks of delay. Farmers with irrigation facilities have started sowing, but, rain-dependent farmers are yet to commence. Farmers may face problems in case rainfalls do not start evenly in Maharashtra, Madhya Pradesh and Rajasthan,” said D N Pathak, Executive Director, SOPA.

Soybean output (million tonnes)
Crop year	Output
2002-03	7.82
2003-04	6.88
2004-05	8.27
2005-06	8.85
2006-07	10.97
2007-08	9.91
2008-09	9.96
2009-10	12.74
2010-11	12.21
2011-12	14.67
2012-13	11.86
2013-14	10.71
2014-15	10.37
2015-16	7.54*
Source: Ministry of Agriculture; *Data of Soybean Processors Association

The monsoon rainfalls were delayed by two weeks in some parts of Rajasthan, Madhya Pradesh and Maharashtra, India’s three major soybean producing states that contribute to nearly 80 per cent of the country’s total output. Alarmingly, the rainfalls remained inadequate in some areas in Maharashtra and Madhya Pradesh to commence sowing. Farmers still await the intensity of rainfalls to increase to achieve at least normal output level this year.

Soybean, a 100 per cent kharif produce, is a 90-day crop whose sowing begins with the onset of monsoon in June, for harvesting in the second half of September. But, soybean sowing has been delayed by two weeks which, traders believe, would impact yield.

Data compiled by the Ministry of Agriculture showed India’s soybean output at 8.7 million tonnes. The scenario looks grim for sowing and harvesting this year as well, due to delay in the monsoon rainfalls.

“This year again, farmers faced huge supply shortage of breeder seed due to the lack of breeding from professional seed suppliers. This is likely to impact next sowing year more than the current year,” said a soy oil producer.

Soybean output is imperative to edible oil import into due to India’s heavily dependence on imported oil. India meets around 55 per cent of 23.5 million tonnes of vegetable oil demand through imports largely from Indonesia, Malaysia and Argentina.

Traders, therefore, have urged the government to allow import of oilseeds duty free to make edible oilseed available for domestic crushers which they believe would benefit two ways : promote manufacturing locally and make oilmeal available for exports.

"We have lost heavily in oilmeal exports at a time when its global demand is increasing. With growing demand from India as bird and animal feed, we will soon start importing oilmeal," said Atul Chaturvedi, chief executive officer, Adani Wilmar, producer of the Fortune brand of edible oil.

India’s has lost heavily in terms of oilmeal exports due to non availability of the animal feed following lower crushing of seeds in India.