SOPA revises estimates of soyabean production as prices stumble in wholesale markets

“Based on the survey, the total kharif 2019 estimated soybean production has been revised from 89.94 lt to 93.06 lt. The revision is only for the state from 36.29 lt to 39.41 lt,” the report said. (File photo)

Sharp correction in the average traded price at various wholesale markets could mean a “virtual meltdown” for soyabean growers across the country even as Indore-based Soyabean Processors Association (SOPA) revised the production estimates of the oilseed in the country for the 2019-20 kharif season. On Saturday, SOPA revised its earlier production estimation of 89.94 lakh tonnes (lt) to 93.06 lt for the current season.

A press statement issued by SOPA on Saturday said its revision was based on its field survey conducted in Maharashtra, Madhya Pradesh and Rajasthan. “Based on the survey, the total kharif 2019 estimated soybean production has been revised from 89.94 lt to 93.06 lt. The revision is only for the state from 36.29 lt to 39.41 lt. There is no change in the crop estimates of other states,” the report read. The new estimates, put out by SOPA, has also increased domestic consumption of soya meal — the protein rich solid left after the oil is extracted from the bean — from the previous 47.5 lt to 50 lt. Similarly, export estimation was corrected from 10 lt to 7 lt for the October- September 2019-20 oil year.

At Latur’s wholesale market, a constant fall in average traded price of the oilseed has worried farmers.On Saturday, the average price fetched at auctions was Rs 3,775 per quintal, a sharp drop from Rs 4,080 at the beginning of the year. Farmers had deferred offloading their produce in the hope of better prices.

The oilseed was trading at over Rs 4,150 per quintal in January as a smaller crop and increased domestic consumption had kept prices on the higher side. However, since the spread of the coronavirus in China, prices witnessed a major correction. Traders now fear further correction in prices as consumption of chicken takes a beating in view of rumours linking it to spread of the virus.