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Soybean crushing down on low supplies during OctoberSoybean crushing down on low supplies during October
BS Reporter | Indore
November 10, 2013 Last Updated at 20:14 IST
Soybean crushing activity was down almost 35-50% in first month of the oil year (October 2013) compared with the corresponding period last year, said experts.
Indian Oil Year starts with the arrivals of new soybean crop in October and goes on till September next year.
"We feel around 5.5 -6 lakh tonne soybean was crushed in October which is less than 2-3 lakh tonne compared with what is generally crushed during this time," said Rajesh Agrawal, coordinator and spokesman, Soybean Processors Association of India.
Weak and low quality supplies due to rains during the harvesting time are seen as the major reasons behind low crushing, said traders.
All India soybean supplies were not more than 7 lakh tonne in October which is generally 10-12 lakh tonne every year, added Agrawal.
Crushers feel the activity may show some improvement in November but are worried about smooth supplies in the coming days.
"Farmers may decide to hold back their produce in expectations of better prices," said a major crusher from Dewas near Indore.
Around 55-60% oilseed crushing units of Madhya Pradesh are in and around Dewas near Indore.
Madhya Pradesh is the largest soybean producing state in India. Low crushing would also affect availability of soyoil and soymeal in the domestic markets. "Soyoil and soymeal supplies were not encouraging in October which has led to price rise in both the commodities," added the crusher. Crushers feel soybean prices may keep getting support on supply front but lower soy product demand due to higher prices may put some pressure on prices in November.