Soyabean although rich in protein contains a moderate amount of oil has attained greater importance as an oilseed on account of its easy adaptability and resilience for cultivation in a wide variety of climatic conditions as well as capability to give high yields compared to any other oilseed. Consequently, soyabean has become the largest producing oilseed, contributing for nearly 60% of total world oilseeds production.

Soyabean is reported to be originated from China. Although, soyabean is a native of South Asia, majority of the world's soybean has been cultivated in the United States as well as in South American countries. Soyabean cultivation was picked up momentum in India during late 1990s

Economic importance:

Soyabean is cultivated for its seeds which are rich source of protein and oil. Protein content is about 40% and oil content is about 20%.
Oil: Soya oil recovery is about 17%
Meal: A bi-product, rich in protein and used extensively as a feed for livestock, poultry and fish.

Climate and cultivation

Soyabean is a tropical season crop but can be cultivated in subtropical and temperate climates as well. Though, the plant is resistant to relatively extreme temperatures, optimum growth takes place between 10o C to 30o C. Soyabean is normally cultivated as a kharif crop in India. It comes up well within a rainfall of 600 mm to 1000 mm. The crop can be cultivated in most types of soil but thrives best in warm, fertile and clay land.

Crop operations of soyabean vary across major producing countries. Crop season in Brazil and Argentina is relatively longer starting from October -December and extents to May-June. But crop season in the US, China and India is shorter extending from April-May to October-November. This has apparently given an additional advantage for Brazil and Argentina to export in the lean seasons of other countries such as India and China.

Cultivation and seasons in India

About 60 % of area as well as production of soyabean in the country comes from Madhya Pradesh while Maharashtra is in the second place contributing for about 30 %.

World scenario

North and south Americas together contribute for about 80% of soyabean production. Among all major soybean-producing countries, the US occupies the first place both in terms of area and production followed by Brazil and Argentina. China and India occupies the fourth and fifth places respectively.

Production in the US has declined marginally during the past two years. On the other hand, soyabean production in Brazil and Argentina has been increasing consistently during the past 10 years. Production in Brazil has doubled from 43.5 million tons in 2001-02 to 89 million tons in 2013-14.

Soyabean consumption in the world increased steeply driven by the sharp rise in demand from china, India and South America countries. Consumption in china has increased manifold from 28 million tons in 2001-02 to nearly 80 million tons in 2013-14. Similarly consumption in India also has doubled from 5.3 million tons to 11.3 million tons during the corresponding period

Export contribution from Brazil has been rising steadily during the past three years although exports have been highly fluctuating with respect to all other major exporting countries. Among major soyabean importers, China, though stood in the second place until 2002-03, has taken over the EU countries and reached the first place, with a 100 % rise in imports during 2002-03 and continued on the top thereafter.

Domestic scenario

Soyabean is relatively a new oilseed crop introduced in India and its cultivation has picked up momentum in 1980s. Area under soyabean in the country was almost negligible at less than 0.5 million hectare until 1980. But its cultivation has spread rather quickly recording an exceptional growth of about 20% per annum during 1981-82 to 1990-91.

Production has also registered equally impressive growth 16% per annum in the same period, at a relatively low pace due to fluctuations in yields. The growth in area and production has continued to rise even in the 1990s but at a moderate growth of about 7% per annum. Nevertheless the growth has accelerated at about 13% per annum during the past 15 years. But soyabean production in India accounts for only 3 % of total production in the world.

State wise production

Production of soyabean is concentrated in three states Madhya Pradesh, Maharashtra and Rajasthan and these three states together account for about 95% of total soyabean production. Madhya Pradesh is the single largest producer of soyabean contributing for more than 50% of total output in the country. Maharashtra occupies the second place contributing for about 33% followed by Rajasthan accounting for 11% of total output in the country.

Major cultivated varieties

UP, Rajasthan, Bihar Bragg, PK 262, PK 372, PK 414, Pusa 27, Pusa 40, SL 4, SL 96 Palm Soya
MP & Maharashtra Bragg, Gaurav, MACS 571, MACS 124, MACS 450, PK 308, PK 472
Andhra Pradesh PK 472, MACS 58, MACS 124, JS 335, MACS 201

Major domestic markets

Spot markets

Indore, Ujjain, Dewas, Mandsore, Bhopal, Nagpur and Kota

Futures trading

International: Chicago Board of Trading (CBOT) is the largest soya futures market Dalian Commodity Exchange, China

In India soya futures are traded in three forms, seed, oil and meal. Major exchanges that offer futures trading in soya complex include NBOT, NCDEX, MCX and NMCE.

External trade

Major export destinations: NA

Major import sources: NA

Factors influencing prices

Carryover stocks: leftover stocks from the previous year’s production after meeting the demand.

Expected demand: average level of consumption and exports during the past few years

Crop acreage: Extent of area sown under the crop

Production: Estimated output based on the acreage and weather conditions and pest infestation etc.,

Imports and exports: in case of edible oils, the traders need to know the details of important sources and destinations of the external trade. Further, the traders have to monitor the crop status in the respective countries.

Government policies: any change in government policy relating to the crops such as minimum support price (MSP)

Procurement: direct procurement by the government agencies and storage in warehouses change in tariff and base prices of externally traded goods will have a direct impact on the respective commodity prices.

Soyabean Products

Soya Oil

Major markets

Spot markets:
Indore, Mumbai and Nagpur

Futures Markets:

External trade

Major Export destinations: NA

Major Import Sources: Argentina and Brazil

Soya Meal

Major markets

Spot markets:
Indore, Latur, Nagpur and Jalna

Futures Markets:

External trade

Major Export destinations: Iran, France, Europe and Indonesia

Major Import Sources: NA

Copyright © CC Commodity Info Services All rights reserved.