In the current Kharif season, it has been noticed that there is a decrease in production of soybean, as the industry has sufficient stocks to carry forward so it will not have much impact on the exports. In the exports, these stocks will avoid any major fall, in the last year that has seen a rise.
Soybean Processors Association of India (SOPA) has been made a data which shows in the present oil year (October 2016-September 2017); nearly 18 lakh tonnes of soya meal has been exported from the country. As per the data, between October 2016 and August 2017, the exports have increased by a significant 362%; means the exports went up to a high of 17.35 lakh tonnes from 3.75 lakh tonnes.
As per SOPA, it is assumed that this year soybean production will fall and to release the production figures still has to make an estimate of the current crop. As the area was sown has been down, Soybean production will be lower than in the previous year and due to a long dry spell in July yields are also expected to be lower than in the previous year, said by Mr Davish Jain, the president of SOPA.
As enough stock is available for crushing, and also because of the price support scheme of Madhya Pradesh government, so the soybean prices will not be seeing much change. The soy meal exports will get support by this. In 2017-18 oil year, soy meal export of India will reach 1-2 million tonnes, estimated by the industry. The cheap imports leading to the excess availability of soyabean oil and the strengthening value of the rupee against the US dollar is the main reason for worry among the traders.
In the international market, Developments like the recent rise in soybean prices can make India outpriced, said by Davish Jain.