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Introduction
Soybeans on crushing and solvent extraction yield soyoil at
18% recovery and soymeal. About 85% is crushed worldwide.
In the world 55-60, 8-10 and 42-45 million tons of beans, oil
and meal are traded annually.
USA (20-30 million tons), Brazil (12-18 million tons),
Argentina (5-10 million tons) are the exporters of beans, while
China (18-20 million tons) and EU (15-18 million tons) are the
major importers.
Argentina (3-5 million tons) and Brazil (2-3 million tons) are
the major exporters of oil. China (1.5-2.5 million tons) and India
(1-2 million tons) are the major importers of oil.
China imports all its soybean oil almost from Argentina and
Brazil. India imports soya oil from Argentina, Brazil and US.
India imported 192649 tons of Crude Soya oil during June
2010. According to USDA, the country is estimated to import
1.19 million tones of soy oil for 2010-11, while China is
estimated to import 2.15 million tones during the same period.
Major Soybean Producing Countries
Seasonality
USA Brazil Argentina China India
January
February
March Harvesting
April Sowing Harvesting Harvesting Sowing
May Sowing Harvesting Harvesting Sowing Sowing
June Sowing Sowing
July Sowing
August
September Harvesting Harvesting
October Harvesting Sowing Harvesting Harvesting
November Harvesting Sowing Sowing Harvesting
December Sowing Sowing Harvesting
India in World Soy Industry (In Million
Tones)
Soybean Annual Data India World India’s
(Rounded figs.) Share
(In %)
Annual Seed Production 7.9 225.3 3.5
Annual Oil Production 1.2 37.5 3.2
Annual Oil Imports 1.6 10 16
Annual Oil Consumption 2.8 37.5 7.5
Annual Meal Production 5.4 160.3 3.4
Annual Meal Exports 3.5 56 6.3
Annual Meal Consumption 1.9 159.2 1.2
Indian Scenario
India produces 7-9 million tons of beans, 1.2 million ton of oil and 4-6 million
tons of soymeal in a normal year.
With imports, the total oil availability in the country is around 2.5 million
tons.
Madhya Pradesh (3.5-4.5 million tons), Maharashtra, Rajasthan are the
major producers of soybean in India.
The production is highly dependent on the monsoon and fluctuates between
years.
Soy is a Kharif crop, sown in June-July and harvested by September-
October. Peak arrivals are from October-November.
The prices follow the international sentiments and display very high volatility.
Major Trading Centers in India
Indore, Ujjain, Dewas, Mandsore in Madhya Pradesh, Nagpur in Maharashtra, Kota in
Rajasthan are major trading centers.
Spot markets of Indore and Mumbai serve as the ‘reference’ market for Soya oil prices.
The prices in Indore reflects the domestically crushed soybean oil (refined and
solvent extracted) while Mumbai price indicates the imported soy oil price.
In India, NCDEX and NBOT are the major exchanges for these commodities.
There is zero import duty on crude soybean oil in India while it is 7.5% for
refined oil.
M VAT 5% on all edible oil from 1st May 2010. (In any form refined or
unrefined)
Soybean oil price chart ($/mt)
Years
Market Influencing Factors
Weather at all the producing centers, domestic and international. The
pod bearing period, being the most crucial.
The area planted, determined by the price of soybean against that of
competitive crops, viz., maize, jowar, bajra.
International price movement, the futures market at CBOT being the
major international reference market.
Pests and diseases.
The supply-demand and price scenario of competitive oils, viz., palm
oil.
Demand for soymeal from the feed sector and the entire fundamentals
of this sector.
The crush margin between meal, oil and seed
Soybean Imports
soybean imports viable and hence India has never imported soybeans.
Soybean import was discouraged and oil import was resorted to only to meet
the shortfalls. From time to time there were attempts by trade and industry to
seek concessional terms for import, so that the domestic crushing capacity