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Consumer goods maker Ruchi Soya Industries will start a venture with a Canadian and Japanese partners for research leading to production of high-yielding non-genetically modified soyabean seeds. Ruchi will have 55 per cent in the venture; Canada’s D J Hendrick International, a soyabean researcher, and Japan’s KMDI International, which trades in and markets high-quality foodgrade soyabeans, will have 35 per cent and 10 per cent, respectively, in the “yet to be named” venture.
“Assessment is yet to be done on the investment in the venture. But whatever is required will be met through internal accruals. Our aim is to increase soyabean yield in India, one of the lowest in the world,” said Dinesh Shahra, founder and managing director, Ruchi Soya.
India constitutes four per cent of the world’s soyabean output at 12 million tonnes (mt) a year and average yield is 1.017 tonnes a hectare (ha) against the 2.6 tonnes world average. Of the annual output, 1.8 mt goes into extracting oil. On raising the yield to the world average, India will have another mt for extracting soya oil, leading to lower imports of edible oils. India imports 55 per cent of its edible oils use, at 18 million tonnes now. It will provide eight million tonnes more for producing soyameal.
Lower imports and earnings through higher meal exports will save India at least $2.6 billion a year, said Ankesh Shahra, a senior Ruchi Soya official who facilitated the deal. Ruchi Soya hopes to achieve the first breakthrough in two years. The Canadian partner will contribute in the development of germ plasm by crossbreeding genes from the two countries. India does not allow commercialisation of genetically modified seeds in the edibles sector. So far, GM seed is allowed only in cotton in India.
“Assessment is yet to be done on the investment in the venture. But whatever is required will be met through internal accruals. Our aim is to increase soyabean yield in India, one of the lowest in the world,” said Dinesh Shahra, founder and managing director, Ruchi Soya.
India constitutes four per cent of the world’s soyabean output at 12 million tonnes (mt) a year and average yield is 1.017 tonnes a hectare (ha) against the 2.6 tonnes world average. Of the annual output, 1.8 mt goes into extracting oil. On raising the yield to the world average, India will have another mt for extracting soya oil, leading to lower imports of edible oils. India imports 55 per cent of its edible oils use, at 18 million tonnes now. It will provide eight million tonnes more for producing soyameal.
Lower imports and earnings through higher meal exports will save India at least $2.6 billion a year, said Ankesh Shahra, a senior Ruchi Soya official who facilitated the deal. Ruchi Soya hopes to achieve the first breakthrough in two years. The Canadian partner will contribute in the development of germ plasm by crossbreeding genes from the two countries. India does not allow commercialisation of genetically modified seeds in the edibles sector. So far, GM seed is allowed only in cotton in India.
