Soyabean: Weak sowing affected market prices
August 26, 2017 at 1:44 PM ,
Rainbow Exports
Weak sowing affected market prices
However, the central government has recently increased the duty on import of raw edible oil from 7.5 percent to 15 percent, but this will have a temporary effect on the falling prices of soybean. Traders said that overall prices will remain weak as the impact of the reduction of import duty has already been shown in the market. About 2 to 3 million tonnes of soybean reserves have been saved last year.
Due to drying in parts of Western Madhya Pradesh and parts of Maharashtra, soybean production can be reduced. Clearly, prices may increase in the event of a drop in production. Meanwhile, officials of the Meteorological Department say that in parts of Madhya Pradesh and Maharashtra, Marathwada and Vidarbha may end the drought in the next few days. The cyclonic circulation in the Bay of Bengal will help in the monsoon to be activated in these parts.
Soybean is a major crop in western part of Madhya Pradesh. With the decrease in the prices of soybean and the reduction in the benefits to the farmers, the farmers started fierce performance in June. The movement of the farmers took a fierce and the police had to fire the control to control it, in which six people were killed.
Reduced value of soybean in Indore and its nearby markets reached the level of minimum support price (MSP) of US$476 per mt. Prices have been reduced even at some point. Since 2015, prices were around US$465 per mt., there was a shock in the main center of soybean production, Malva-Nimar has badly economically affected. The soybean cultivation in Madhya Pradesh has come down to 4.8million hectares in 2017-18, which was 5.3 million hectares in 2016-17.
Prices will be firm in coming days.
Increasing import duty of US will increase the margins of Indian Soya oil firms
The US government has decided to increase import duty on biodiesel from Argentina from 50.29% to 64.77%. Apart from this, import tax on Indonesia has increased from 41.06% to 68.28% on biodiesel. Its aim is to help America's refining and crushing industry.
Experts & Analysts say as follows:
- “With the move from the US, Indian Edible Oil firms will be able to increase the share of Soy Oil in its total imports of Edible Oil by around 10%.”
- “Due to the subsidy and tax benefits given by the governments of Argentina and Indonesia to exporters, the import of soy oil in India can increase by 5-10%
- "Branded refineries, which directly sell the end consumer, will benefit from this because they will be able to reduce prices and increase their margins with cheap imports."
- "Improving margins of companies by improving imports will improve margins." In the next two-three years, the growth of the refining industry can be good.
- “This step is not expected to make the edible oil industry of the country more profitable”
- "Soya oil prices are expected to come down as Argentina supplies about 200,000 tonnes of soy oil-based biodiesel, but there is a sudden reduction in prices."
- World's largest importer of edible oil, India has to import 67% of its requirement from Indonesia and Malaysia.
- Palm oil has the largest share of imported edible oil in the country. After this, soya oil is around 25%
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