Increase in soyabean and urad prices after heavy rains in Madhya Pradesh
The hike in the prices will also impact the demand from the domestic poultry and aqua industry.
In the wholesale mandis of the state, the prices increased by an average five per cent to Rs 3,800- 3,850 per quintal for soyabean in the past ten days while urad prices increased by four per cent to Rs 4,800 per quintal in the same time frame, said traders.
On the National Commodity & Derivatives Exchange Limited, soyabean for October delivery traded five per cent higher than ten days ago at Rs 3,731 per quintal.
“Looking at the crop position, prices will touch Rs 3,900 - 3,950 per quintal on the higher end for soyabean,” said Dinesh Kumar Mangal, owner, Hari Om Traders in the Indore mandi. He said that trade was happening for small deliveries looking at the volatility in the market. Even, fewer future contracts were being signed, he said.
Madhya Pradesh accounts to more than 50 per cent of the production of soyabean in the country followed by Maharashtra and Rajasthan. Annual production of the crop in 2018-10 (July- June) was 13.7 million tonnes.
The hike in the prices will also impact the demand from the domestic poultry and aqua industry, said traders and exporters.
Satendra Aggarwal, COO at Ruchi Soya Industries said that he expected prices to remain firm on expectation of good export demand from US and China and the incessant rains in Madhya Pradesh. He added that rain have been in excess across Nimach, Mandsaur, Agar- Malwa, Rajgarh, Ujjain, Indore and Narshimapura districts.
“Once the sky clears and the water recedes, we will get a clarity on the crop position and the prices. It will take another two weeks to define the trend,” he said.
The Soybean Processors Association of India (SOPA) said that they will be sending a survey team to access the crop loss, said D N Pathak, executive director at the association.
“In our last report in August, we had said that 4.35 lakh hectare out of the total 50 lakh hectare in the state was under stress. Now the situation has changed with the continuous rains and we will revise the report in the first week of October,” said Pathak.
Suresh Aggarwal, president of the All India Dal Millers Association, said that due to excess rains the urad crop has been damaged. “Prices have been gradually increasing and we expect it to increase by another two to four per cent. Due to water logging in fields, the roots have decayed, which is not a good sign,” he said.