Soybean: First advance production estimate for Kharif 2024
12-Nov-2024 11:05 AM
Soybean: First advance production estimate for Kharif 2024
The first advance production estimate for Kharif 2024-25 soybean production in India has set the figure at 133.6 lakh tonnes. This estimate reflects a slight increase from the previous Kharif season (2023), which had an advance estimate of 130.6 lakh tonnes. Over the last four years, there has been a notable increase in soybean production, which helped stabilize the availability in the domestic market. However, despite the abundant availability, prices have remained below the Minimum Support Price (MSP), with strong arrivals of new soybeans in the markets.
Some key points:
Historical Estimates:
The lowest soybean production in the last 10 years was recorded in Kharif 2015 at 85.7 lakh tonnes.
The highest production was recorded in Kharif 2022 at 150 lakh tonnes.
Market Dynamics:
There has been a decrease in soybean imports from African countries due to the declining domestic prices.
To support soybean prices, the Indian government increased the import duty, which led to an increase in soybean prices by about Rs. 200-300 per quintal.
Government Procurement:
The government is actively procuring soybeans from major producing states such as Karnataka, Telangana, Madhya Pradesh, Maharashtra, Rajasthan, and Gujarat.
The procurement target for Kharif 2024 is 32.23 lakh tonnes, with 33,660 tonnes procured so far. The procurement operations are ongoing, with the highest procurement having occurred in Telangana (0.22 lakh tonnes).
The procurement period runs from September 25 to December 23 in Telangana, and from October 21, 2024 to January 18, 2025 in Madhya Pradesh.
Market Prices:
Despite the strong arrivals, prices of soybeans remain lower than the MSP. On 11 November, prices in various markets were:
Rs.4000-4450 per 100 kg in Ujjain
Rs.4350 per 100 kg in Ganjbasoda
Rs.4000 per 100 kg in Kota
Rs.3500-3550 per 100 kg in Jalna
The moisture content in new soybeans is reportedly good, but increased arrivals and production have led to a decrease in prices.
Brazil’s Soybean Progress:
Soybean sowing in Brazil has reached 67% as of early November, which is 6% behind the average pace.
During the period from 1 to 15 November, Brazil exported 10 lakh tonnes of soybeans, while maize exports reached 17 lakh tonnes.
Overall, India's soybean market is experiencing a strong supply of new soybeans, with increasing government procurement likely to provide some support to prices. However, the market still faces downward pressure on prices due to the high availability.