Low crop takes its toll on Feb soybean processing

The fall in soybean processing was due to overall decline in soybean production from 6.8 million tonne to 5.8 mt, SOPA said.

"Overall soybean production in the country till September 2004 was around 5.8 mt, 1 mt lower than in the previous year. Because of lower production, bean processing has also suffered heavily this season," an analyst with SOPA said.

Soybean extraction too dipped by 235,000 tonne on year to 105,000 tonne in February.

"When extraction is low, naturally, processing bound to be low," SOPA sources said.

Soy oil production during February fell 66.9 per cent to 24,150 tonne. Figures released by SOPA show that since harvesting of the soybean crop in Oct-Nov, oil production has steadily declined from around 60,000 tonnes in November 2004 to about 24,150 tonnes in February.

"This is primarily because of the fact that when bean availability is more immediately after harvesting, oil production is also more," an analyst said.

Scientists and agriculturists attribute the fall in production to a variety of reasons including decline in per hectare productivity, natural calamity and pest infestations.

"Last season, soybean crop production suffered due to attack of girdle beetle and tobacco caterpillar," researchers said.

Studies have shown soybean productivity in the country is merely 1 tonne per hectare, while in other soybean producing countries like US, Argentina and Brazil it is around 2-2.5 tonne per hectare.

Soybean prices have been steadily climbing in the local mandis due to fall in supply. It has risen by around Rs 350 per 100 kg since November.

Meanwhile, India's soyoil imports in April are seen at around 200,000 tonne, traders said on Friday. According to The Solvent Extractors' Association of India, the country imported 58,930 tonne soyoil in March.

Imports in May are likely to touch 250,000 tonne. Traders believe higher imports may pull down the commodity's prices.

"In April, soyoil imports will be at around 200,000 tonne. The imported product will be cheaper than domestic produce and this may result in prices going down next month," Govindlal G Patel, a Rajkot-based trader with Dipak Enterprise said.

Imports are likely to be cheaper for the next two-three months due to a bumper Latin American soyabean in 2004-05 crop year ending September.

According to the latest Oil World estimates, the Brazilian crop will be around 50 million tonne, while that in Argentina is estimated at around 37.5 million tonne.

The market expects palm oil imports of around 350,000 tonne each in the months of April and May.

Domestic prices of all edible oils are likely to be under pressure in the coming months due to huge imports in the summer season""when consumption is generally low, traders said.

A good domestic output of mustard oil will further pull down prices, they said. According to official estimates, mustard seed output in 2004-05 crop year ending June is estimated at around 7.6 million tonne against last year's 6.2 million.