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SOYAMEAL
1.Introduction
 
Soybeans (Glycine max.) are the most economically important bean in the world. Soybean belongs to the legume family and is native to East Asia. The United States is the world leader in soybean production; other major soybean-producing nations are Brazil, Argentina and China. In India, Madhya Pradesh, Maharashtra, Rajasthan, Andhra Pradesh and Karnataka are the major producers of soybeans. Madhya Pradesh tops the list and the total soybean production in the state is 4.981 millions tons which is about 53% of the total production of India.
World scenario
 
Although, a native of China, soyabean for all practical reasons is an American crop today. USA is the major producer of soybean and ranks first in production. It’s share in the world production is almost 39 percent. Brazil, Argentina and China rank second, third and fourth position in
terms of production respectively. India occupies fifth place. The following table presents the picture
of global production of soybean.

Table 16.1: Major producing countries of soybean in the world (2006)

COUNTRY
AREA(000’ha)
PRODUCTION
(000’tons)
PRODUCTIVITY
(tons/ha)
USA
28,983.6
87,669.8
3.0
Brazil
22,006.6
52,355.9
2.3
Argentina
15,097.3
40,467.1
2.6
China
9,100.1
15,500.2
1.7
India
7,716.0
7,150.0
0.9
Paraguay
2,200.0
3,800.0
1.7
Canada
1,225.8
3,532.8
2.8
Others
6,654.4
8,872.6
1.4
All World
92,988.8
2,21,500.9
2.3
Source: http://faostat.fao.org/site/567/DesktopDefault.aspx?PageID=567
Indian scenario
 
There is sizeable increase in acreage and production of soybean in India. In acreage, there is an increase from 6,002 thousand ha in 2001-02 to 8,850 thousand ha in 2007-08. Similarly the production has increased from 5,400 thousand tons in 2001-02 to 9,473 thousand tons in 2006-07.The details are given in table 16.2
Table 16.2: Area, production, and productivity of soybean in India

 

S.NO.
YEAR
AREA(000’ ha)
PRODUCTION(000’ tons.)
PRODUCTIVITY(tons/ha)
1
2001-02
6,002
5,400
0.900
2
2002-03
5,675
4,300
0.758
3
2003-04
6,456
6,932
1.074
4
2004-05
7,208
6,122
0.849
5
2005-06
7,672
7,388
0.963
6
2006-07
7,716
7,150
0.927
7
2007-08
8,850
9,473
1.070
Source: http://www.sopa.org/st1.htm & http://www.sopa.org/st3.htm

 

2.Major producing states with production of last 3 years.
Maximum soybean production takes place in Madhya Pradesh (4,981 thousand tons) followed by Maharashtra (3,237 thousand tons) then comes Rajasthan (735 thousand tons), Karnataka (154 thousand tons.) and Andhra Pradesh (136 thousand tons).The details are given below in table 16.3.
  Table 16.3: Area, production and productivity of leading soybean growing states in India
`
STATE
AREA(000’ha)
PRODUCTION(000’tons)
PRODUCTIVITY(tons/ha)
2005-06
2006-07
2007-08
2005-06
2006-07
2007-08
2005-06
2006-07
2007-08
Madhya Pradesh
4,192.2
4,455.4
4,879.0
4,450.0
3,942.8
4,981.0
1.061
0.885
1.021
Maharashtra
2,389.0
2,050.1
2,651.5
2,050.1
2,398.7
3,237.4
0.858
1.040
1.221
Rajasthan
698.1
523.1
763.5
523.1
493.0
735.4
0.749
0.850
0.963
Karnataka
141.8
132.1
162.0
132.1
131.2
153.9
0.934
0.850
0.950
Andhra Pradesh
135.9
145.0
107.0
145.0
100.1
136.7
1.067
0.940
1.278
Chhatisgarh
65.0
49.6
110.0
49.6
61.8
88.0
0.766
0.750
0.800
Others
050.0
38.4
176.4
38.4
21.9
141.1
0.768
0.730
0.800
Total
7,672.0
7,388.3
8,849.0
7,388.3
7,149.6
9,473.4
0.963
0.927
1.070
Source: Soybean Processors Association of India (SOPA), Indore
3.
Description of Commercially grown varieties
Table 16.4: Shows the varietal characteristics of commercially grown soybean

 

Name of the
variety
Description
Ahilya-1 (NRC 2)
White flowers, tawny pubescence, yellow seed coat, grey to black hilum, good germinability, determinate.
Ahilya-2 (NRC 12)
Purple flowers, tawny pubescence, determinate, light to dark brown hilum
Ahilya-3 (NRC 7)
Determinate, grey pubescence, purple flowers, yellow seed coat, brown hilum, high oil content, resistant to pod-shattering.
JS 71-5
Purple flowers, yellow seed coat, black hilum, semi-dwarf, plant height 30 to 40 cms, determinate, poor seed longevity.
JS 90-41
Purple flower, tawny pubescence, semi-determinate, lanceolate leaves, 4- seeded pods, greenish yellow seed, blackish hilum.
JS 93-05
Semi determinate, violet flowers, lanceolate leaves, four seeded pods,glabrous stem & pods, non shattering, black hilum.
JS 335
Purple flowers, semi-determinate, resistant to shattering, black hilum. Performs well in Eastern and Southern states
MAUS 47
Determinate plants with tawny pubescence, violet flowers, tan to dark brown pods, yellow, round seeds and brown hilum.
MAUS 61
Semi determinate, Violet flowers, glabrous leaves, pods covered with leaves, non shattering
PK-416
White flowers, tawny pubescence, yellow seed coat, brown hilum, semideterminate. Performs well in Punjab, Haryana and also in central zone.
4.
Good Agricultural Practices (GAP)
Use of high yielding and high quality varieties
Integrated nutrient management.
Pest and disease management
5.
Harvesting season of crop in leading states
The season of harvesting of soybean depends on the time of sowing and the variety grown such as short duration or long duration. Generally, Kharif soybean is harvested during the period October – November and Rabi crops harvested in the month of January – February.

 

STATES
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
Madhya Pradesh
Maharashtra
Rajasthan
Fig. - 40
*The above graph showing harvest pattern in leading soybean growing states.

 

6.
Arrival pattern in market
Soybean crop arrives in the market in the months of January, February and October, November.
7 (a).
Concentrated pockets
The details of concentrated pockets of soybean in different states are given below in table 5.
Table 16. 5: Concentrated pockets of soybean in India

 

State
Districts
Madhya Pradesh
Ujjain, Indore, Dewas, Mandsaur, Nimach, Ratlam, Dhar, Khandwa, Harda, Baitul, Hoshagabad, Shajapur, Rajgarh, Sehore, Bhopal.
Maharashtra
Ahmednagar, Dhule, Nandurbar, Jalgaon, Nasik, Kolhapur, Pune, Sangli, Satara, Solapur, Aurangabad, Beed, Jalna, Latur, Osmanabad, Akola, Nagpur, Wardha
Rajasthan
Barang, Bhilwara, Jaipur, Sawai Madhopur,Bundi, Jhalawar, Kota, Chhitorgarh,Udaipur, Banswara.

 

7 (b).
Catchment areas of market
Table 16.6: Showing the details of catchment areas of market of soybean in leading states

 

States
Districts(Market)
Blocks
Madhya Pradesh
Ujjain
Badnagar, Mahindpur,Ujjain
Indore
Indore, Gautampura,Mhow
Dewas
Dewas, Khategaon,Soankachh
Mandsour
Mandsour
Neemach
Neemach
Ratlam
Ratlam, Jaora
Dhar
Dhar, Badnawar
Khandwa
Khandwa
Harda
Harda
Baitul
Baitul
Hoshangabad
Itarshi, Pipariya
Shajapur
Shujalpur
Rajgarh
Biora,Pachore
Sihore
Sihore, Ashta
Bhopal
Bhopal
Maharashtra
Ahmednagar
Kopargaon, Newasa, Rahuri, Shrigonda, Shrirampur, Akole
Dhule
Dhule,
Nandurbar
Shahada, Akkallkuwa
Jalgaon
Chopada, Pachora, Raver
Nashik
Lasalgaon, Malegaon, Manmad,
Nandgaon, Sinnar, Kalvan, Dindori
Kolhapur
Gadhinglaj, Jaysingpur
Pune
Vadgaonpeth, Baramati, Shirur
Sangli
Islampur, Sangli, Tasgaon
Satara
Karad, Koregaon, Patan, Satara
Solapur
Akluj
Aurangabad
Kannad, Lasurstation, Sillod,
Beed
Ambejogai, Kille Dharur, Gevrai, Kaij,
Jalna
Jalna, Ambad (Vadi Godri), Bhokardan
Latur
Ahmedpur, Ausa, Murud, Udgir
Osmanabad
Kalamb,Osmanabad, Tuljalpur
Akola
Akola, Akot, Balapur, Karanja,
Mangrulpeer, Manora Murtizapur,
Patur, Risod, Telhara, Washim
Nagpur
Bhiwapur, Katol, Mandhal, Nagpur, Narkhed, Saoner, Umred, Parshiwani
Wardha
Arvi, Hinganghat, Ashti, Pulgaon, Sindi,Wardha,Samudrapur
Rajasthan
Barang
Anta, Atur, Barang
Bhilwara
Mandalgarh
Jaipur
Jaipur
Bundi
Bundi, Keshorai Patan
Jhalawar
Bhawani Mandi, Iklera, Jhalarapatan, Khanpur
Kota
Itawa, Kota, Ramganj Mandi
Chhitorgarh
Badisadri, Begu, Chitorgarh, Pratapgarh
Udaipur
Fatehnagar
Banswara
Banswara

 

8.
Price graph of soyabean
 
Fig. - 41
*The above graph shows the price (Rs. /Qtl.) of soybean throughout year in leading states
9.
Soyameal :Soyameal is available after crushing soyabean which is used as an animal feed. The availability of soyameal at present is 5280 thousand tons (2006-07). It increased to 6,385 thousand tons during 2007-08 (table 16.7). Extraction units are mostly located in Madhya Pradesh and Maharashtra states.
  Table 16.7: Production of soyameal in India

 

S.no.
Year
Production (000’ tons)
1
2004-05
4015
2
2005-06
4782
3
2006-07
5280
4
2007-08
6385
Source: Soybean Processors Association of India (SOPA), Indore

 

10.
Criteria and description of grades of soyameal
Indian soybean meal specifications & scale of allowances as per SOPA model contract as on 21st April, 2008
Protein - Min. 48%
Oil - Max. 1.50%
Fibre - Max. 6%
Moisture - Max. 11%
Sand/Silica - Max. 2%
Urease Activity 0.30 Unit Max (Mg/N.G/Min) at 30 degree Centigrade by EEC method
Free from lumps & foreign material other than Soya.
11.
Packaging and its details
Packing and stitching of soyameal as per SOPA model contract as on 21st April, 2008
Packaging of soyameal should be done
1. In new single jute/bags of uniform weight where variation in weight in bags should not be more than +/- 2% as per contract. (For e.g. if it is 50 kgs bags then variation should be upto 49 kgs to 51 kgs only). The bags should be strong enough for multiple handling. The bags should either be double machine stitched or hand stitched with double twine cross stitched (i.e. 8 x 2 cross stitches). The mouth of the bag should be rolled up properly.
2.
In sound second hand bags, the bags should be machine or hand stitched with double twine cross stitched with minimum 8 forth and 8 back stitched (i.e. 8 x 2 cross stitches)
12.
Exports and export potential
A.
Domestic strengths for exporting soyameal are given below:
The main strength for export of soyameal is that in India, soyameal is a product from soyabean varieties which are essentially not genetically modified. Almost all foreign countries prefer soyameal from non genetically modified varieties, for feeding to their livestock.
Although total production of soybean seeds has increased from 54,00,000 tons in 2001-02 to 94,73,000 tons in 2007-08, but still there is vast scope for its expansion in area under this crop in states like M.P. Maharashtra, and other states.
There is a strong research support as there is NRC for Soybean, Indore for providing solutions to problems in its cultivation.
India has bred high yielding cultivars of soybean for adoption of cultivators.
B.
Export
There is a significant spurt in exports of soyameal as only 615,328 tons were exported during 2004-05 and as much as 4,196,245 tons were exported during 2006-07.(Table 16.8 & Fig 42).
Table 16.8: Export of soyameal from India

 

Year
Quantity(tons)
2004-2005
615328
2005-2006
3494860
2006-2007
4196295

Source: Soybean Processors Association of India (SOPA), Indore

 
C.
Export Potential
  The potential for exports is discussed in the following paragraphs:
  (i) GCC countries
  GCC countries imported to the tune of 8, 01,916 tons during 2006. There is 55.5% increase in demand over the year 2003. The largest importers in GCC countries are Saudi Arabia (7, 20,026 tons), Kuwait (49,852 tons), UAE (21,564 tons), Oman (9672 tons) and Qatar (802 tons).
  India in its exports is meeting almost entire requirements of UAE, Kuwait and Qatar, however, in case of Saudi Arabia which imported to the extent of 720026 tons during 2006; India did not export any quantity of soyameal to Saudi Arabia. The requirements of Saudi Arabia were met by Brazil (449,780 tons), U.S.A (106,213 tons) and Argentina (49,829 tons).
  India is exporting to other GCC countries at most competitive prices over Brazil, U.S.A and Argentina and moreover India is closer to GCC countries compared to above countries. Thus, there is no reason why India should not have share in imports of Saudi Arabia. India
must make sincere efforts to penetrate the market.
(ii) ASEAN countries
  ASEAN countries imported up to 8,230,166 tons of soyameal during 2006. The largest importers were Thailand (2,174,201 tons), Indonesia (2,116,058 tons), Vietnam (1,820,338 tons), Philippines (1,359,315 tons) and Malaysia (7, 40,572 tons). However, India’s total exports during 2006 to ASEAN countries were only 1/4th of the total demand.
  India exported Soyameal during 2006 to Vietnam (8, 92,772 tons), Indonesia (6, 56,024 tons), Thailand (288765 tons), Singapore (2, 22,896 tons), Philippines (82,285 tons) and Malaysia (48,901 tons). Main competitors with India are Argentina, Brazil and U.S.A, who
inspite of the fact are quite away in distance from ASEAN countries are able to supply soyameal at competitive prices.
  Thus, India must increase productivity of soyabean, so that it can lower the cost of production and offer soyameal to ASEAN countries at much lower prices and increase share in exports.
(iii) Pacific Rim countries and China
  Pacific Rim countries comprising North Korea, Japan and China imported soyameal during 2006, 1,709,150 tons, 1,647,492 tons and 6,74,177 tons respectively, whereas India exported 5,35,810 tons to Japan, 6,82,104 tons to North Korea, 3,15,028 tons to China and
89,388 tons to Taiwan.
  Main competition of India is with Argentina, Brazil and to some extent with U.S.A. India is much closer to these countries and must make sincere efforts to have larger share in imports of these countries by offering at lower prices by increasing productivity and reducing cost of
production.
D. Enhancing competitiveness for export of soyameal
  Following measures will enhance competitiveness for export of soyameal from India:
Our main competitors for export of soyameal are Argentina, Brazil and U.S.A. Their yield of soyabean crop is 2.5 to 3 times higher than India. In order to be competitive, India must enhance productivity of soybean, so that soyameal is made available to importing countries at
competitive prices.
India must strictly enforce quality standards acceptable to European countries. This is essential for penetration in European markets in a significant way.
India must brand its product in order to be competitive in International markets.
13. Documents required for exports
  a) Documents related to goods
  a) Invoice b) Packing List c) Certificate of origin
  b) Documents related to shipment
  a) Mate Receipt b) Shipping Bill c) Bill of handing d) Airway Bill
  c) Documents related to Payment
  a) Letter of Credit (L/C) b) Bill of Exchange
  d) Documents related to quality of goods
  a) Phytosanitary Certificate b) GLOBALGAP Certification c) Health Certificate
  e) Organic Certification
  - Certificate indicating material produce is based on organic farming.
  f) Documents related to Foreign Exchange Regulations
  GR Form: Documents required by RBI which assures to RBI that the exporter will realize the proceeds of goods within 180 days from the date of Shipment.
  g) Other Document
  Bank Realization Certification (BRC): This is the advice given by Foreign Exchange Bank after the realization of money from Importer.
14. Prices prevailing in international markets
  The given below tables shows the annual average price range of soyameal in the markets of ASEAN and GCC countries. The table 16.9 shows the pricing trend in the markets of ASEAN and GCC countries
  Table 16.9: Summary of prices for soyameal in target markets for India

 

Country
Annual Average price Range (2003-08)
Currency
ASEAN*
USD/kg
0.25 to 0.26
INR/kg
11.65 to 11.76
GCC*
USD/kg
0.25
INR/kg
11.29
Source: Comtrade Database
* Prices shown are low, because these are average prices during 2003-08. However, during 2008
prices of Soyameal have shot up to Rs. 12-15 per kg.

 

15.
Cost Calculation from harvest to packhouse to port
Cost estimates for exports of soyameal from India (as per information collected during 2008)
(a) Procurement price*:
Approx. price (Rs. /kg):
8-10
*Price of soyameal varies according to month of procurement
(b) Charges for packing, brokerage, insurance, transport, etc. (below in table):
Table 16.10: Charges for packing, brokerage, insurance, transport, etc.

 

Particulars
Cost /ton (Rs.)
Packing material (jute bags 50 kgs)
460
Brokerage
10-12
Insurance
15
2 % of shortage
35
Interest and truck loading
80-85
Transport to port (from Indore to Kandla port)
750-800
Total
1350 – 1407
or 1.35 to 1.40 per kg
Source: SOPA, Indore
(c)
Sea freight charges*:
Freight rates for ordinary container are as follows: