Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
11,895.4523.35
Stock Analysis, IPO, Mutual Funds, Bonds & More

Soya traders bank on high yield for export boost

Traders and processors expect prices to fall once the crop is harvested, as the current price of Rs 3,700 a quintal is unlikely to support exports.

, ET Bureau|
Updated: Jul 27, 2016, 05.12 PM IST
0Comments
Traders and processors expect prices to fall once the crop is harvested, as the current price of Rs 3,700 a quintal is unlikely to support exports.
Traders and processors expect prices to fall once the crop is harvested, as the current price of Rs 3,700 a quintal is unlikely to support exports.
NEW DELHI: Soyabean traders and processors expect better domestic and overseas sales this year on the back of increased area under cultivation and sufficient rainfall.

The crop has been planted on 10.61 million hectares of land, a 1.2 per cent increase over the previous year.

Traders and processors expect prices to fall once the crop is harvested, as the current price of Rs 3,700 a quintal is unlikely to support exports.

“Export of soymeal and other value added products will be better than last year, and so will domestic consumption from poultry industry, with hope of a good crop,” said Satendra Aggarwal, operations head at Ruchi Soya Industries.

In 2015-16, soyabean production stood at 7- 7.5 million tonnes, down from 2013-14’s level of 11-12 million tonnes.

The industry says that if the monsoon rains in September were equally distributed and were not heavy then production in 2016-17, could cross 9 million tonnes.

“Countries like Iran, Middle East and China want Indian soyameal crop as we are non GMO,” said Aggarwal.

Soyabean, a major source of protein, is processed to obtain 82 per cent soymeal, which is widely used in the animal feed industry, and 18 per cent soya oil.

“This year, we can easily export 3-4 million tonnes of soyameal, compared with 0.4 million tonnes in the previous year. We are requesting the government to increase custom duty on imported oil as Indian meal prices will decrease and we can further export,” said Davish Jain, chairman of Soybean Processors Association of India.

The current import duty on crude soyabean oil is 12.5 per cent, which industry feels should be above 30 per cent.

Jain said orders from Iran, a traditional market, might pick up after the Prime Minister Narendra Modi’s historic visit to the country in May.

Soyabean traders and processors said they are watching global prices and the monsoon.

“In the last one year, the international market crashed due to a bumper crop of 275 million tonnes worldwide, largely in the US, Brazil, Argentina and China. Prices have now crashed and come down to $400 a tonne, compared with Indian price at $500-550 a tonne for soyameal,” said a trader from an MNC based in Mumbai.

Also Read

Higher market share, exports boost Dalmia Bharat volumes

IT industry seeks relief from double tax,export boosting steps

Government cuts onion MEP to $400 per tonnne in exports boost

Regulatory relief, exports boost Wockhardt shares by over 30 per cent

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service