SOYBEAN INTRODUCTION. Area
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1 SOYBEAN INTRODUCTION Soybean is known as the Golden Bean of the twentieth century. Though soybean is a legume crop, yet it is widely used as oilseed. Due to very poor cookability and digestibility on account of inherent presence of trypsin inhibitor, it cannot be utilised as a pulse. It is now the second largest oilseed in India after groundnut. It grows in varied agro-climatic conditions. It has emerged as an important commercial crop in many countries and international trade of soybean is spread globally. Several countries such as Japan, China, Indonesia, Philippines, and European countries are importing soybean to supplement their domestic requirement for human consumption and cattle feed. It is a cream-colored oval bean about the size of a common pea. Soybean belongs to the legume family and is native to East Asia. Soya is a frost-sensitive summer annual and plants may reach 1 metre high. Seeds are borne in hairy pods, which grow in clusters of three to five; each pod contains two or three seeds, which resemble peas. It has been an important protein source for millions of people for over five thousand years. It can be grown on a variety of soils and in a wide range of climates. Soybean is a kharif crop in India and is sown in June July and harvested in late September October. Peak arrivals begin from October and November. Soybean is gaining popularity on account of it s unique characteristics and adaptability to varied agro-climatic conditions. It has unmatched composition of 40 per cent protein and 20 per cent oil and nutritional superiority on account of containing essential amino acids, unsaturated fatty acids, carbohydrates, vitamins and minerals. Soybean protein is rich in valuable amino acid lycine (5%) in which most cereals are deficient. In addition, it contains a good amount of minerals, salts and vitamins (thiamine and riboflavin) and its sprouting grains contain a considerable amount of Vitamin C. Indian Scenario In the recent past, soybean cultivation has increased manifold as compared to any other oilseed crop in India and stands next only to groundnut, though commercial production of soybean began only in Soybean production is mainly confined to Madhya Pradesh (also known as soybean bowl of India), Maharashtra, Rajasthan, Andhra Pradesh, Karnataka, Uttar Pradesh and Chhattisgarh. SOYBEAN: AREA, PRODUCTION and SHARE BY STATE Area Production Production State (lakh hectares) (lakh tonnes) % Share Madhya Pradesh Maharashtra Rajasthan Other States Total Source: The Soybean Processors Association of India.
2 The soybean crop is grown mainly in the states of Madhya Pradesh, Maharashtra and Rajasthan. About 53 per cent of the cropped area under this crop falls in Madhya Pradesh. However, the yield of soybean crop in Madhya Pradesh was as low as 838 kg per hectare whereas it was 1,254 kg and 1,091 kg per hectare in Maharashtra and Rajasthan, respectively. Soybean acreage and production in the country was steadily increasing till the late 1990s and lost its momentum in the past few years. The area under the crop steadily increased from 22.5 lakh hectares in to lakh hectares in but thereafter the area fell sharply in due to poor monsoon conditions. Again, the area under the crop increased in successive years after and it is reported up at lakh hectares in For the last six years, soybean has been witnessing growth in terms of acreage and it now stands at lakh ha. In , the production of soybean seeds was mere lakh tonnes, which increased to 54 lakh tonnes in and which decreased to 43 lakh tonnes in It is only in that production recovered with record of lakh tonnes of soybean seeds, thereafter the production fell to in However, production rose in consecutive years after and now ( ) it has significantly increased to lakh tonnes, an all time record. Similarly, the yield per hectare declined from 1,074 kg per hectare in to 927 kg per hectare in The yield rose sharply in to 1070 kg per hectare just short of the all-time record yield of 1074 kg per hectare in Studies revealed that good seeds and better practices could deliver yield of the order of three tonnes per ha which could place India s total production around 15 million tonnes. Thus, there is ample scope of increasing the production. Non-availability of short duration high yielding, good quality seed on adequate scale are the major constraint in achieving higher productivity. Only limited seed varieties are available and production of quality seed is also limited. Further, low and unbalanced use of chemical fertilizers is another major factor for poor yield of soybean crop. As, the country is in short supply of edible oil and about 50 per cent of our edible oil consumption is fulfilled by imports of different vegetable oils, there is a dire need to promote the production of oilseeds like soybean. SOYBEAN: AREA, PRODUCTION and YIELD Till Year Area (lakh hectares) Production (lakh tonnes) Yield (Kg/Ha.) Source: The Soybean Processors Association of India. (Kg/Ha.) Indian Export-Import Scenario The domestic production of soybean is lakh tonnes and though it is a sharp increase, it has not been able to make a dent in India s import dependence for edible oils. With the steady increase in India s population, the days of self-sufficiency in oils and oilseeds still remains distant.
3 Hence, soybean export from India is not allowed. At the same time, bean imports are also restricted so as to encourage domestic production. However, there are no imports of soybean in India as it is more feasible to import oil. India is world s second largest importer of vegetable oil after China. India is dominated by palm group of oils followed by soybean oil. With imports, the total oil availability in the country is around 13 million tonnes. Oil import is unrestricted and government uses tariff mechanism to regulate import volumes. India is not an exporter of soybean oil and seed. However, it is one of the major exporters of oilmeal, particularly to Asian countries and soymeal forms a major part of it. The soymeal obtained in India is known for its purity, quality and high nutritive content. India crushes all the marketable surplus of soybean available with it. Indian soybean when crushed gives about per cent of oil and about 80 per cent of meal. Some more oil can be extracted from the meal after which it is called de-oiled cake (DOC). The country consumes about 30 per cent of soymeal produced and rest of it is exported. India, does not import soymeal to meet the requirements of the domestic feed industry, as the price equation inclusive of transports does not work in favour of imports. The following table gives the soymeal exports of India. INDIAN SOYBEAN MEAL EXPORTS / Oil Year (Oct-Sept) Soymeal Export (lakh tonnes) Source: The Soybean Processors Association of India. (lakh tonnes) *Note : Figures for the year onwards does not include Export to Nepal, Pakistan & Bangladesh by Rail/Road as per information available with SOPA. Figures for the year are up to January '2008. Today, there is a strong need to review the import policy and allow the import of oilseeds (preferably soybean) in partial replacement of crude of refined oils. At present, there is a 30 per cent import duty on soybean and its import is permitted only in split form only, which is not acceptable. China changed its policy long back and now imports more soybean than soyoil and soymeal. Even a country like Pakistan has also started importing soybean though in a small way. At present, India could produce only about 50 per cent of its domestic edible oil consumption. There is overcapacity in the country in oilseed crushing, solvent extraction and refining. To meet the domestic demand and also prevent a spurt in domestic prices, the Union government has liberalised the imports of vegetable oils considerably in the recent years. This has also added to the woes of the industry as the availability of cheap imported vegetable oils has considerably reduced the margins of the solvent extraction industry. The industry and trade in India went through turmoil due to lower domestic prices of vegetable oils, lower domestic output of oilseeds, high price of domestic oilseeds and increasing imports of cheaper vegetable oils in recent years.
4 GLOBAL SCENARIO Although a native of China, soybean for all practical purposes is an American crop today. The US is the major producer of soybean and ranks first in production. Brazil, Argentina and China rank second, third and fourth position respectively in terms of production. India occupies fifth place. The following table presents the picture of global production of soybean. Soya is now a global staple food and about 220 million tonnes of beans are produced, mainly in the United States (33 per cent), Brazil (28 per cent), Argentina (21 per cent) and China (6 per cent) and the rest (12 per cent) is produced in India, Paraguay, Canada and others. World Production of Soybeans Soybeans: World Production (Thousand Metric Tons) 2003/ / / / /08Jan Production United States Brazil Argentina China Peoples Republic of India Paraguay Canada Other World Source: USDA, as on 2/8/2008 World Area Under Soybeans Presently the world s total area under soybean cultivation is in million hectares mainly in United States (31 per cent), Brazil (26 per cent) and Argentina (20 per cent). The rest 33 per cent is contributed by China (10 per cent), India (10 per cent) and Paraguay (3 per cent). Soybeans: World Area under Soybeans Country (In million hectares) Proj. United States of America Brazil Argentina China India Paraguay Canada World Source: USDA, as on 2/11/2008
5 Exports of Soybeans The US (36 per cent), Brazil (39 per cent) and Argentina (15 per cent) are the major exporters of soybeans and Argentina and Brazil are the major exporters of soyoil. China and EU are the major importers of soybeans. China and India are the major importers of soyoil. Exports of Soybeans (Thousand Metric Tons) 2003/ / / / /08Jan Exports Brazil United States Argentina Paraguay Canada Other World Source: USDA, as on 2/8/2008 Warehouses & Locations Pease visit for latest NCDEX list of accredited warehouse at different locations Please visit for latest list of MCX list of accredited warehouse at different locations DELIVERY CENTERS: NCDEX: Main Delivery Centre: At the accredited warehouse(s) in Indore Additional Delivery Centre: Nagpur, Kota. MCX: Main delivery centres: Deliveries can be effected from Exchange designated Warehouse at Indore, which may be CWC or private warehouse. Contract Specifications: NCDEX: Soy Bean Basis Price Unit of Trading Quotation/Base Value Tick size Delivery Unit The basis price of Soy Bean seed shall be Ex-warehouse Indore exclusive of sales taxes. 10 MT Rs per quintal Re (5 paisa) 10 MT
6 MCX: Soy Seed Basis Price Unit of Trading Quotation/Base Value Ex- Indore (inclusive of all taxes). 10 MT Tick size Re 1 Delivery Unit Rs per quintal 10 MT (with tolerance limit of 250 kg) which means that if the seller delivers any quantity between 9.75 MT to MT, it will be construed as adequate discharge of his delivery obligation of 10 MT, though he will get the value only for actually quantity delivered by him. APPENDICES Cultivation Soybean cultivates well in warm and moist climate. Temperature of 26.5 to 30 0 C is optimum for its good cultivation. Another important factor is the day length as most soybean plants are short day plants and are sensitive to photo periods, thus time of planting is very important factor. Welldrained and fertile loam soil, with a ph between , is most suitable for cultivating soyabean. The soybean crop generally does not require any irrigation during kharif season. However, if there were a long spell of drought at the time of pod filling, one irrigation would be desirable. During excessive rains, proper drainage is also equally important. When soybean plants mature they start dropping their leaves. The maturity period ranges from 50 to 140 days depending on the varieties. When the plants reach maturity, the leaves turn yellow and drop and soybean pods dry out quickly. There is a rapid loss of moisture from the seed. At harvest, the moisture content of the seeds should be 15 per cent. Uses: About two-thirds of all manufactured food products contain derivatives or ingredients made from soya.
7 Soyoil : Soyoil is used mostly for production of vegetable oil and margarine. In its pure form as a vegetable oil, it is often used in salad dressings and mayonnaise; as a vegetable fat it is used for baking and frying. Soya lecithin acts as an emulsifier in some chocolate, breakfast cereals, ice cream, sweets and margarine. Soyoil is also used in a wide variety of non-food products, e.g. soap, biological detergents, plastics, and CFC-free cooling agents; the derivative glycerine is used in the manufacture of emulsifiers for skin cream and softeners for gelatin capsules. Soya flours: Soya flours are used to increase the shelf-life of many products and improve the colour of pastry crusts; the flour is free of gluten, so cannot replace all wheat or rye flour in breadmaking but can be used at about 15 per cent to give a dense bread with a nutty flavor and moist quality. Texturised soy protein (TSP or TVP) is made from soya flour that is compressed until the fibre change in structure. It is available to home cooks as a dried, granular product and in chunksized pieces for rehydrating and use as a meat-replacer. Soy Proteins: Isolated soy protein is used in biscuits, sweets, diet drinks, pasta and frozen foods; it also improves the consistency of meat products. It is added to many foods including pizzas, noodles, bread, and foods for special dietary needs, for instance soy drinks, which serve as a substitute for cow s milk. Fermenting soya protein can make various cheese and other milk and meat substitute products, such as miso, tofu and tempeh. Other Uses: It is widely used in the industrial production of different antibiotics. It plays significant role in preventing and treating chronic diseases such as heart ailments, osteoporosis, cancer, kidney ailments and menopausal syndromes. It can be used as fodder; forage can be made into hay, silage etc. Its forage and cake are excellent nutritive foods for livestock and poultry. Soybean being the richest, cheapest and easiest source of best quality proteins and fats and having a vast multiplicity of uses as food and industrial products is sometimes called a wonder crop.
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