Soybean Cultivation Spread Ahead

India is expected to increase its area under soybean cultivation to 5.7 million hectares in the 1997/98 season (November/October) from 5 million in the current year, a trade organisation said on Tuesday.

The Soybean Processors' Association of India (SOPA), based at Indore, said farmers in India's central state of Madhya Pradesh, the country's soybean bowl, had geared up for sowing with the arrival of pre-monsoon rains. Regular rains are expected in the next few days.

SOPA cautioned farmers to sow soybean only after their land received rainfall of 7-8 cm. Pre-monsoon rains had so far brought in rainfall of about 4 cm. SOPA has set a soybean production target of 5.7 million tonnes for the country and 4 million for Madhya Pradesh in the 1997/98 season. It expects the area under soybean cultivation in Madhya Pradesh to increase to 4 million hectares in 1997/98 from 3.7 million hectares in the current season.

 

SOPA has estimated that nearly 700,000 tonnes of soybean stock is with the farmers, of which 500,000 tonnes are meant for sowing and the remainder for re-sowing if needed. Soybean was quoted at around Rs 12,000/12,900 per tonne, at around the same price which prevailed last year.

But traders said soymeal prices, were higher this year at $305/306 per tonne compared to $268/270 per tonne in the same month last year.

According to trade sources, India has so far exported 2.3 million tonnes of soymeal in the 1996/97 season against a total export of 2.6 million in the previous year.

Traders said soymeal production had come sharply down because of poor arrivals. They said the crushing capacity utilisation in local soymeal processing units had come down to 8.0/10 per cent in the current season against 12/14 per cent last year.

Prices firm: Indian soybean prices on Tuesday were firm in central Indian markets due to poor arrivals and better buying support from soybean processing units, dealers said. Arrivals were poor due to rain in central areas.

Prices were up by Rs 100-150 per tonne. Soyoil prices were sharply lower due to increased selling pressure. Both soyoil solvent and refined were down by Rs 200 per tonne.

Soymeal yellow was $304-305 per tonne FAS (free alongside ship) west coast Indian port in export. Rapeseed extraction was also down in support of soymeal prices.(Reuter)