Soya beans fail to bounce as crushing sinks to 4-year low

Soya bean prices have gone up 18.6% to Rs 4,512.50 a quintal since the start of this year. But refined oil prices have risen 3% to Rs 716 per 10 kg due to cheaper imports

Soya-bean crushing activity has seen a huge drop due to lower availability. India's crushing capacity is 22.5 million tonnes. But only 10 per cent of units are in use. These are using 25 to 30 per cent of their capacities, said Rajesh Agarwal, spokesperson of Soybean Processors Association of India.

During summer, ahead of kharif sowing, bean crushing is usually low. But this year it is unusually so. Sources said this had not been seen in four years.

Since the start of this oil year (October to September) till March, India has crushed five million tonnes. It had crushed a million tonnes more a year ago.

This year, bean output is similar to last. Also, there has been crop damage, which has impacted quality and quantity. Last year, India had produced 1.2 million tonnes. This year, it produced 1.1 million tonnes.

Govindbhai Patel, managing partner at GG Patel and Nikhil Research Company, said, "Crushing has seen a huge impact and is at a four- to five-year low due to lower availability on the spot market."

B V Mehta, executive director of Solvent Extractors' Association of India, said, "There is a difference between Indian and global prices. So, importing oil is attractive. This has affected crushing." Arrivals have seen a hit in three months and have been lower 25 per cent compared to last year's.

Daily arrivals all over India are 200,000 bags (one is 100 kg), lower compared to last year's.

Bean prices have gone up 18.6 per cent to Rs 4,512.5 a quintal since the start of this calendar year. But refined oil prices have only risen three per cent to Rs 716 per 10 kg due to cheaper imports.