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Soybean supplies in Madhya Pradesh have been almost reduced to half in a month as farmers are concentrating more on Rabi crops, traders say.
"Last month, during this time, the average daily arrivals in the state were around 90,000-1,00,000 bags of 100 kg each which currently stands at 50,000-55,000 bags," P Goyal, a soybean trade in Indore, said.
Madhya Pradesh is the largest producer of soybean in the country followed by Maharashtra and Rajasthan.
Traders feel arrivals are down as farmers are concentrating more on marketing Rabi crops like wheat and chana. Also, many farmers are holding back in expectation of better prices in the coming days, said traders.
"Many are hoping for better prices in the coming days as domestic markets may get support from overseas markets due to weather concerns in South America and Malaysia," Prakash Jain, a soybean trader in Indore, said.
After USA, South American countries Brazil and Argentina are the two largest soybean producers in the world.
Malaysian palm oil prices affect the soyoil prices in India as the two products are considered substitute products.
India is one of the leading soymeal suppliers to the southeast Asian countries and among the major consumers of vegetable oils.
