Soybean supplies reduced to half in a month

Soybean supplies in Madhya Pradesh have reduced to almost half in a month due to holding back by farmers in expectations of better prices, said mandi traders.

Monday, farmers delivered around 100,000 bags of 100 kg each to Madhya Pradesh mandis compared with 250,000 bags a month ago, said traders.

Madhya Pradesh is the number one producer of soybean in India followed by Maharashtra and Rajasthan.

"Farmers' dissatisfaction with the declining soybean prices and other factors like drop in temperature are affecting the supplies," said B L Saini, a soybean trader in Indore mandi.

Soy product like soymeal and soyoil demand is below the expectations of the market players at present, said traders.

India is one of the leading soymeal suppliers to the southeast Asian countries and among the major consumers of vegetable oils.

Monday, soybean auction range in MP mandis was Rs 3600-3900 per 100 kg compared with Rs 3900-4000 per 100 kg a month ago, said traders.

But traders feel the prices will get support of low supplies at the current levels.

Traders said soybean supplies have reduced throughout the country in the last one month.

In other major soybean producing states like Maharashtra and Rajasthan the average daily arrivals are 100,000 bags and 30,000 bags respectively.

Last week, supplies in Rajasthan got affected due to labour strike but the arrivals did not pick up even though the mandis are open now, said traders.