Ruchi Soya Industries is eyeing improved capacity utilisation benefits after the positive announcements in the mid-term review of the export policy by the government, it said today.
With 3.72 million MT capacities across 10 locations, Ruchi Soya has the largest oil seed extraction (crushing) capacity in India. In the past two years, owing to bad crop, only around 15 per cent of the crushing capacity was being utilised.
With an increase in crushing operations, the capacity utilisation is expected to more than double in the current year to 30-35 per cent, a company statement said here.
The increase in export incentives for agriculture and related products along with the two per cent additional incentive under MEIS scheme for soyameal will help Ruchi Soya's oilseed extraction business with an increase in capacity utilisation as well as increased output of value added products, the release said.
"Our crushing operations at key plants at Manglia near Indore in Madhya Pradesh; Nagpur in Maharashtra and Kota in Rajasthan have been on the uptrend by 30 per cent to 40 per cent as compared to the first half of the current year," Ruchi Soya Industries COO Satendra Agarwal said.
"Coming on the back of our strengthening supplies to Patanjali, the increase in export incentive and increase in import duties will further improve the business environment," he added.
The availability of soyabean had been boosted since farmers were selling after the government agreed to pay them the difference between the market price and MSP (minimum support prices). The soyabean prices today are more than the MSP, further increasing the availability.
"We expect increased crushing with enhanced export viability to further augment our capacity utilisation to the extent of 20 per cent with a consequent increase in overall margins," Agarwal said.
Last month the government had almost doubled the import duty on all edible oils which will further boost domestic prices. This would work in favour of the farmers and will lead to an increase in oilseed prices thereby finally adding to an increased planting area in the upcoming soyabean season.
Hailing the government's decision, Dinesh Shahra, Managing Director Ruchi Soya Industries said, "The increase of Rs 1,354 crore in the incentives for agriculture and related products will give an additional lift to agri industries, which will in turn benefit all stakeholders including farmers.
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