Moreover, at this price, crushers see a disparity of Rs 4,000 to Rs 5,000 per tonne of processing, he said. In the process, the availability of soybean meal has decreased dramatically, he explained.
The Solvent Extractors Association of India (SEA) has launched a red flag on soybean price speculation with the Securities Exchange Board of India (Sebi), seeking to take action to curb this activity.
“The soybean contract on NCDEX has been the subject of unbridled and excessive speculation in recent weeks and soybean prices have reached Rs 7,250 per quintal, or Rs 5,750 per quintal a month ago,” wrote the association with Sebi. The industry body said it was difficult to understand what has changed so drastically in such a short time to justify the unprecedented rise in prices.
Atul Chaturvedi, president of the association, pointed out that this excessive speculative activity has the potential to disrupt the smooth running of the solvent extraction industry engaged in soybean processing, as the availability of beans has all but dried up. suddenly, which in turn leads to misinformation. He said the poultry industry, which was heavily dependent on soybean meal for its diet, was struggling to survive.
“Given the sudden surge in the price of soybeans as their price increases every day, arrivals to the market have decreased because traders and farmers do not sell in the hope of a better price,” he said. declared. Moreover, at this price, crushers see a disparity of Rs 4,000 to Rs 5,000 per tonne of processing, he said. In the process, the availability of soybean meal has decreased dramatically, he explained.
Chaturvedi said the price of soybean meal, ex-works, reached 60,000 per tonne from 40,500 rupees a month ago and has caused panic in the poultry industry, which is the main consumer of flour. soy. “The market is now completely dominated by speculators and is rising daily. In the process, the soybean crushing and the poultry industry suffer, ”he said. The association urged Sebi to examine the current scenario and take appropriate action to keep order in the market.
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