ITOD Project- Soybean (HS Code-1201)

Identify opportunities for export of Soybean

Group Members:
1) Chaitanya Patil
(13C)
2) Roopam Agarwal (41C)
3) Sameer Dubey
(44C)

Page | 1

Table of Contents

1. About Soybean .. 3
2. Varieties of Soybean . 3
3. Export-Import Statistics .. 6
3 a) FOB value for Export from Nhava Sheva Port . 6
3 b) FOB value for Export from Mundra Port . 6
3 c) Comparative Analysis ... 7
3 d) Top 5 Exporters of Soybean in terms of % 7
3 e) Top 5 Exporters of Soybean in terms of value 7
3 f) % Share in Indias total exports of Soybean over the years .. 8
3 g) Top importers of Soybean in year 2013 .. 8
3 h) Top 5 importers to China . 8
3 i) Indias Export to Top 5 countries by value . 9
3 j) Export Incentives for Export of Soybean from India 9
4. State Wise Production of Soybean In India for 2012-13 . 10
5. Sanitary and Phyto-Sanitary Standards 10
6. Marketing constraints and remedial measures 10
7. Institutional Facilities ...... 11
8. Export Analysis for ASEAN countries .. 14
9. ASEAN Countries Supply Demand Scenario 14
10. Competitive Analysis for Export in ASEAN countries based on tariffs .. 16
11. Recommendations . 17

Page | 2

About Soybean:
Soybean is also known as the Golden Bean of the 20 th century. Though Soybean is a legume crop it is widely
used as oilseed. Due to very poor cookability and digestibility on account of inherent presence of Trypsin
inhibitor, it cannot be used as a pulse. It is now the second largest oilseed after groundnut. It grows in varied
agro climatic conditions. It has emerged as one of the important commercial crops in many countries. Several
countries such as Japan, China, Philippines, Indonesia, European and Middle East countries are importing
Soybean to supplement their domestic requirement for human consumption and cattle feed.
Soybean has great potential as an exceptionally nutritive and very rich protein food. It can supply
the much needed protein to human diets, because it contains above 40 per cent protein of superior quality
and all the essential amino acids particularly glycine, tryptophan and lysine, similar to cows milk and
animal proteins. Soybean also contains about 20 per cent oil with an important fatty acid, lecithin and
Vitamin A and D. The 4 percent mineral salts of Soybeans are fairly rich in phosphorous and calcium.
Major Constituents of Soybean:
Contents
Proteins
Carbohydrates
Fibre
Lecithins
Saponins
Oil

Percentage
40
30
05
0.5
04
18-20

Varieties of Soybean:
State wise major Commercial varieties:
States
Madhya Pradesh
Maharashtra (North)

Early (<95 days)

JS 20-34, JS 95-60,
JS 93-05, Ahilya-3
(NRC 7)
JS 20-34, JS 93-05

Maharashtra (South)

MACS-450, RKS 18
(Pratap Soya 2),

Rajasthan

JS 20-34, JS 93-05

Gujarat

JS 20-34, JS 93-05

Varieties
Medium (96-105 days)
JS 20-29, JS 335, Ahilya-4
(NRC 37), JS 97-52, RVS
2001-4, MAUS 81,
JS 20-29, JS 335, NRC 37,
JS 97-52, MAUS 158,
Phule Kalyani, MAUS 81,
MAUS 71
MACS-1188, Phule
Kalyani, Pratikar (MAUS
61), MAUS 71,
JS 20-29, JS 335, NRC 37,
JS 97-52, Pratap Soya 45
(RKS 45), RKS 24, MAUS

Late (>105 days)

JS 20-29, JS 335, NRC 37,

JS 97-52, MAUS 81
Page | 3

Karnataka

JS 93-05, DSb-1,
RKS 18 (Pratap Soya
2), MACS-450,
RKS 18 (Pratap Soya
2), LSb 1, MACS450,

Andhra Pradesh

MACS-1188, Pratikar
(MAUS 61)
MACS-1188, Pratikar
(MAUS 61)

Punjab

SL 744, SL 525, SL 688, PS

1347, Pusa 98-14, Pusa 9712, Pant Soybean 1042
SL 688, PS 1347, SL 525,
Pusa 98-14, Pusa 97-12,
Pant Soybean 1092, Pant
Soybean 1042
PS 1225, SL 688, PS 1347,
SL 525, Pusa 98-14, Pusa
97-12, Pant Soybean 1042
Pant Soybean-19 (PS
1368), VL Soya
65, PS 1225, VL Soya 63,
VL Soya 63, VL Soya 59,
Palam soya, VL Soya 47
Pratap Soya 1 (RAUS 5),

Uttar Pradesh

Haryana
Uttarakhand
Himachal Pradesh
North Eastern Zone
(Assam , Manipur,
Meghalaya, Arunachal
Pradesh, Tripura,
Sikkim, Jharkhand)

RKS 18 (Pratap Soya

2)

JS 97-52,

AGMARK Grade Standards for Soybean (Soybeans Grading and Marking Rules, 2012)
Designation

Extran
Organic
percent
by mass
(max.)

*Inorganic,
percent
by mass
(max.)

Split
cracked
seed %
by mass
(Max)

Immature
,
shriveled
and
green
seeds
percent
by mass
(max.)

Damaged
and
Weevilled
seeds
percent
by
mass
(max.)

Other
edible
seeds
percent
by
mass
(max.)

Moisture
,
percent
by
mass
(max.)

Oil
content,
percent
by
mass
on dry
basis
(Min.)

Colour of
extracted oil
on
lovibond
scale
expressed as
(Y+10R)
in 1/16
cell

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

Special

0.10

0.10

2.0

2.0

Nil

Nil

7.0

20.0

20.0

Standard

0.50

0.25

3.0

3.0

0.5

0.5

9.0

18.0

30.0

1.0

12.0

15.0

40.0

General
0.75
0.25
4.0
7.0
2.0
* Impurities of animal origin shall not exceed 0.10%.
Note. - The total of column (2) to (7) shall not exceed 11% in General grade.

As per SOPA the Specification of SBM are as under:

Protein

Min. 46%

Oil

Max. 1.50%

Fiber

Max. 6%
Page | 4

Moisture

- Max. 12%

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.

Maximum residue limits for pesticides as per Codex for Soybean (dry)
Sl .No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Pesticides

MRL ( Mg / Kg.)
MRL
0.05*
MRL
1
MRL
0.2
MRL
0.1
MRL
0.1
MRL
0.05*
MRL
0.2
MRL
0.05*
MRL
0.02
MRL
0.5

Azinphos-methyl
Carbaryl
Diquat
Fenitrothion
Paraquat
Parathion
Carbondazim
Fenamiphos
Methamyl
Acephate

Prices of different grades of Soybean in major Mandis of India:

Mandi(Market)
Name

Per Quintal in
INR

Per ton in
INR

Per ton in
USD

Average prices in MP of (102-2-7) grade

Indore (10-2-2-7)
Bhopal (10-2-2-7)

3418
3400

34180
34000

551.29
548.39

549.84
Average prices in MP of
(J.S.335) grade

Ujjain (J.S.335)

3564

35640

574.84

574.84
Average prices in Maharashtra
of (10-2-2-7) grade

Nagpur (10-2-2-7)

3400

34000

548.39

548.39
Average prices in Rajashthan of
(10-2-2-7) grade

Kota (10-2-2-7)

3295

32950

531.45

531.45
Average prices in Maharashtra
of Yellow grade

Latur (Yellow)

3385

33850
545.97
1 USD = 62 INR; Forex convertion
Source: CMIE.org

545.97

Page | 5

Export-Import Statistics:
FOB value for Export from Nhava Sheva Port:
Madhya Pradesh
Particulars

Maharashtra

Rajasthan

Maharashtr
a

Indore
(Grade 10-2-27)

Ujjain
(Grade J.S.335)

Nagpur
(Grade 10-22-7)

Kota (Grade
10-2-2-7)

Latur
(Yellow)

549.8

574.8

548.4

531.5

546.0

Assumed Price for

Calculation (USD/Container)

12096.5

12646.5

12064.5

11691.9

12011.3

Inland Haulage
Charges/Local transportation

121.0

129.0

137.1

145.2

74.2

Assumed Price for

Calculation (USD/Metric
Ton)

Custom Clearance &

documentation Charges

165.5

165.5

165.5

165.5

165.5

Terminal Handling Charges

102.2

102.2

102.2

102.2

102.2

13035.0

13618.0

13017.7

12636.3

12899.2

Total (USD/ container)

Remarks

A 20' container is
assumed to contain
22 tonnes of weight

This includes
documentation fee,
custom charges, bill
of lading (per
shipment),
attendance agency
(FCL), Fumigation

FOB value for Export from Mundra Port:

Indore
(Grade 102-2-7)

Ujjain
(Grade J.S.335)

Maharashtr
a
Nagpur
(Grade 10-22-7)

549.8

574.8

548.4

Madhya Pradesh
Particulars

Assumed Price for

Calculation (USD/Met
Ton)
Assumed Price for
Calculation
(USD/Container)
Inland Haulage
Charges/Local
transportation

Rajasthan

Maharashtra

Kota (Grade
10-2-2-7)

Latur
(Yellow)

531.5

546.0

12096.5

12646.5

12064.5

11691.9

12011.3

166.1

166.1

177.4

166.1

177.4

Custom Clearance &

documentation Charges

165.5

165.5

165.5

165.5

165.5

Terminal Handling
Charges

97.4

97.4

97.4

97.4

97.4

Remarks

A 20' container
is assumed to
contain 22
tonnes of
weight

This includes
documentation
fee, custom
charges, BoL
(per shipment),
attendance
agency (FCL),
Fumigation

Page | 6

Total (USD/ container)

13075.3

13650.3

13053.2

12652.4

12997.5

Page | 7

Comparative Analysis after doing calculations for FOB value for Export of Soybean:
Madhya Pradesh

Nhava Sheva (per ton)

Indore
(Grade 10-2-27)
592.5

Mundra (per ton)

594.3

Port

Maharashtra

Rajashthan

Maharashtra

Ujjain (Grade
- J.S.335)

Nagpur (Grade
10-2-2-7)

Kota (Grade 102-2-7)

Latur (Yellow)

619.0

591.7

574.4

586.3

620.5

593.3

575.1

590.8

*Prices are in USD/Ton

Top 5 Exporters of Soybean in terms of %

Brazil

39.8%

USA

37.6%

Argentina

7.1%

Paraguay

4.4%

Canada

3.3%

Others

7.8%

% Share of Top 5 Exporters (2013)

3% 8%
Brazil

US A

4%
Argentina
7%

Paraguay
40%

Canada

Others

38%

Top 5 Exporters of Soybean in terms of Value

Page | 8

Country

2009

2010

2011

2012

2013

Brazil

11424.28

11043

16327.29

17248.32

22810.05

USA

16475.85

18586.27

17563.87

24741.58

21494.19

Argentina

1675.49

4986.277

5457.164

3191.609

4089.403

Paraguay

787.159

1581.435

2286.44

1576.649

2509.104

Canada

964.975

1368.353

1444.046

2170.776

1893.191

2009

2010

2011

2012

2013

13.1
3.7
2.1
0
0
81.1

28.8
43.9
6.4
0
0
20.9

16.2
38.2
3.7
0.3
0
41.6

15.3
23.9
8.8
7.4
4
40.6

46.6
18.4
11.7
6.2
3.9
13.2

Top 5 Export Countries (By Value)

25000
20000
15000
10000
5000
0
2009

2010

2011

Brazil

US A

Paraguay

Canada

2012

2013

Argentina

% Share in Indias total exports of Soybean over the years:

Top Importers of Soybean in the year 2013:

China

Top 5 Exporters to China:

Germany

USA
Canada
Nepal
France
60.8%
Belgium
3.4%
Others

Mexico
Spain

3.3%
3.1%

Japan
Others

3.0%
26.4%
Page | 9

Top 5 Export Countries for China

20000Brazil

United States of America

15000
Argentina

10000

Uruguay

5000

2009

2010

2011

2012

2013

Brazil

7350.347

8148.318

11790.24

14260.03

19132.07

USA

9333.095

11328.52

12578.64

15381.23

13290.2

Argentina

1649.645

4980.288

4329.313

3685.113

3658.625

Uruguay

320.706

601.356

807.526

1212.451

1391.579

Canada

131.226

34.627

219.068

401.958

498.198

Canada

0
2009

2010

2011

2012

2013

Indias Export to Top 5 countries by value:

2009

2010

2011

2012

2799 2199

3014

5094 39581

Canada

798 3357

7102

7932 15593

Nepal

450

491

688

2914

9910

55

2452

5254

1326

3308

21313 7640

18578

USA

France
Belgiu
m
World

2013

33243 84922

E x
p o rt
U
S

f o r

T
o
p

Ca n a d a

Co u n
t ri
e s

N
e pa l

F r
a nc

(B
y

Va l
ue
)

Be l g i u m

Export Incentives for Export of Soybean from India:

Page | 10

State Wise Production of Soybean In India for 2012-13

Total India Production
14,666.40
Madhya Pradesh
7,800.10
Maharashtra
4,670.80
Rajasthan
1,468.60
Karnataka
178
Chhattisgarh
128.1
Gujarat
47
Uttarakhand
20.9
Uttar Pradesh
19
Himachal Pradesh
0.9
Jharkhand
0.9
West Bengal
0.5
Odisha
0.2
In 000 Tonnes
The three states Maharashtra, MP, Rajasthan account for about 95.04% of total Soybean production in India
Page | 11

Sanitary and Phyto-Sanitary Standards:

The Sanitary and phytosanitary (SPS) measures are an integral part of export trade as per agreement
made under GATT (General Agreement on Trade and Tariffs), 1994. As per provisions made under
this agreement, the standards framed should be such that the minimum level of protection required
by an importing country may be fulfilled.
The Soybean, which is rich in protein as well as fat is vulnerable to infestation by
insects, mites and if contains more moisture makes it prone to the infection by fungi.
Soybean should be dried to reduce its moisture content preferably below 9 percent
before packing. Soybean should be packed in clean, dry, sound single hessian bags.
In case, infestation occurs, fumigation should be done with Aluminum Phosphates,
at prescribed dosage. In no case, Methyl Bromide should be used, as the
commodity is rich in oil content. Regular inspection of stocks to check health of the
seed and regular prophylactic treatment should be provided with the approved
chemicals.

Marketing constraints and remedial measures:

1) The co-operative agencies have done a commendable job in Madhya Pradesh and Uttar
Pradesh for marketing of Soybean. In other states, these agencies should also come forward to
improve the marketing system of Soybean.

2) The consumers and processors prefer yellow variety of Soybean for which a higher premium
prevails.
The cake obtained from yellow variety also gets a higher price. Therefore, the
development agencies must popularize high yielding yellow variety Soybean and discourage black
variety of Soybean.
3) At present, the Soybean meal/cake is exported outside the country. This cheap source of protein
can solve the problem of caloric malnutrition in the country. The existing Soybean solvent
extraction plants can produce Soybean fat for human consumption by installing additional
equipment and improving the hygienic conditions.
4) There is a good scope for small units manufacturing protein rich food products from Soybean.
Such agro-based industries may help the cultivators to improve their economic conditions and
provide protein rich Soybean products. Therefore, Government should encourage incentives for
soy based agro industries.
5) Soybean has not entered in to the general food habits of the common people of the country.
Therefore, there is strong need to launch consumer awareness program in order to popularize
various soy products.
6) There is lack of adequate scientific storage facilities in the villages. The present storage facilities
are available mainly in the urban areas. Farmers should build rural godowns under the centrally
sponsored Gramin Bhandaran Yojana availing subsidy and benefit from the scheme.
7) The grade specifications formulated by Directorate of Marketing and Inspection should be
popularized among the farmers, traders and processors. Grading at producers level should also be
encouraged.
Page | 12

8) There is no proper and adequate market intelligence system for Soybean in the states as in
Madhya Pradesh where I.T.C. (Indian Tobacco Company) has established its I.T. (Information
Technology) based market intelligence system and succeeded in revolutionizing ecommerce as a pioneering effort to set an example for others.

Institutional Facilities: (Marketing related facilities of Government and Co-operative facilities)

Scheme and Name of

Facilities
organisation
1.Agmark grading Directorate Promotion of grading of agricultural and allied commodities
of Marketing and Inspection
under Agricultural Produce (Grading & Marking) Act.1937.
(D.M.I.)
Agmark specifications for agricultural commodities have been
Head
Office,
N.H.-IV,
framed, based on their intrinsic quality. Food safety factors are
being incorporated in the standards to compete in world trade.
Faridabad
Standards are being harmonised with international
standards
keeping in view the WTO requirements.
Certification of agricultural commodities is carried out for the
benefit of consumers and producers.

Page | 13

2.Gramin bhandaran yojana It is a capital investment subsidy scheme for

(Rural godown scheme)
construction/renovation/expansion of rural godowns. The scheme
is implemented by DMI in collaboration with NABARD and
Directorate of Marketing and
NCDC. The objectives of the scheme are to create scientific
Inspection.
storage capacity with allied facilities in rural areas to meet the
requirements of farmers for storing farm produce, processed farm
Head
Office,
N.H.-IV,
produce, consumer articles and agricultural inputs.
Faridabad
To prevent distress sale immediately after harvest.
To promote grading and quality control of agricultural
produce to improve their marketability.
To promote pledge financing and marketing credit to
strengthen agricultural marketing in the country for the
introduction of a national system of warehouse receipt in respect of
agricultural commodities stored in such godowns.

3.Price support Scheme

National Agricultural
Co-operative

The entrepreneur will be free to construct godown at any

place and of any size except for restrictions that it would be
outside the limits of Municipal Corporation area and be of a
minimum capacity of 100 MT.

The scheme provides credit linked back-ended capital

investment subsidy @25 percent of the project cost with a ceiling
of Rs. 37.50 lakh per project. For the projects in

North-Eastern states and hilly areas with altitude of more than

1000 m above mean sea level and SC/ST entrepreneurs,
maximum subsidy admissible is @ 33 percent of the project
cost, with aof
ceiling
of Rs.
50.00 Soybean
lakh.
Procurement
oilseeds
including
under the price support
scheme when market price is ruling at or below the declared support
price for a particular year.

Marketing

Federation Ltd. (NAFED).

Page | 14

Institutional Facilities for availing Credit:

Name of scheme
1. Produce
Marketing Loan
Scheme
2. Kishan Credit
Card Scheme

Eligibility
All the categories of
farmers i.e., small /
marginal / others are
eligible.
All types of agricultural
clients having good track
record for last two years are
eligible.

3. Credit Schemes of For different categories of

Nationalised
farmers
Banks
Export Analysis for ASEAN countries:
Items

2013

Facility
This type of loan is given upto Rs. 1 lakh against
pledge /hypothecation of agricultural produce
(including warehouse receipts) for a period not
exceeding 6 months.
Kissan credit card is valid for 3 years through
which the barrower / farmer meet his production
and other contingency needs by using easy
convenient withdrawal slips.
The minimum
credit limit is Rs.3000/- and is based on
operational landholding, cropping pattern and
scale of finance.
Provide credit for construction of godowns, agribusiness, contract farming, agro processing etc.

2014

Change
Quantity

Supply (Million tons)

7.82

7.94

0.12

1.53

Beginning stock

1.06

1.01

-0.05

-4.72

Production

1.44

1.46

0.02

1.39

Import

5.32

5.47

0.15

2.82

Demand (Million tons)

7.82

7.94

0.12

1.53

Domestic utilization

6.67

6.80

0.13

1.95

Export

0.15

0.15

0.00

0.00

Ending stock

1.01

0.99

-0.02

-1.98

Ratio of production to domestic

utilization (%)

21.58

21.48

-0.10

Ratio of beginning stock to

domestic utilization (%)

15.97

14.79

-1.18

*Source: ASEAN Agricultural Commodity Outlook, December 2013

Ratio of Production to Domestic Utilization has decreased by 0.10 million tons

Ratio of beginning stock to domestic utilization has decreased due to rise in domestic consumption and
less beginning stock.
Page | 15

Increase in domestic consumption has caused import in ASEAN countries to increase by about 2.82%

ASEAN Countries Supply Demand Scenario

Country

Supply

Demand

Beginning Productio Imports

Stock
n

ASEAN

1,005,936 1,461,259 5,469,184

Total

Domestic Exports
Utilization

7,936,38
0
6,802,649 147,540

Ending
stock

Total

986,191 7,936,380

Brunei

n.a

604

604

604

n.a.

604

Cambodia

842

140,000

140,842

29,576

110,281

985

140,842

2,718,91
2
2,045,248

Indonesia

690,190

822,385

1,206,337

Lao PDR

6,772

23,000

10

29,782

17,786

4980

7,016

Malaysia

600000

600,000

580,000

20,000

600000

Myanmar

239,075

239,075

238,775

300

239,075

Philippines

n.a

639

60,000

60,639

60,639

n.a.

n.a.

60,639

Singapore

20,000

20,000

20,000

20,000

Thailand
Vietnam

159,751
148,381

70,220
165,940

8,683

664,981 2,718,912
29,782

2,257,800

2,487,77
1
2,322,428

2,000

163,343 2,487,771

1,324,433

1,638,75
4
1,487,593

1296

149,865 1,638,754

ASEAN countries majorly imports from the world. Indonesia is major producer followed by Malaysia, Myanmar
and Vietnam. Major imports are Indonesia, Thailand and Vietnam.

ASEAN Countries Supply-Demand Scenario

Indonesia

Imports merely 23,000 tons from ASEAN countries, rest it imports 98% of importing quantity from outside
ASEAN countries in 2013. Majorly Non-GM soya.
Page | 16

US has captured whole market by more than 95% of total import.

Malaysia

Majorly, 99% of imports from outside ASEAN countries in 2013. Majorly Non-GM soya.
Major importers are US, Brazil, Canada, Paraguay and Argentina.

Philippines

Majorly, 99% of imports from outside ASEAN countries in 2013. Majorly Non-GM soya.
US and Canada have captured market by more than 85% of total import.

Singapore

Majorly, 99% of imports from outside ASEAN countries in 2013. Majorly Non-GM soya.
Canada has captured market by more than 78% of total import.

Thailand

Majorly, 99% of imports from outside ASEAN countries in 2013. Majorly Non-GM soya.
Brazil has captured market by more than 65% of total import, followed by US.

Vietnam

Majorly, 99% of imports from outside ASEAN countries in 2013. Majorly Non-GM soya.
US and Brazil have equal share of 43% each of total import.
Sources: TradeMap ITC WTO| ASEAN Agricultural Commodity Outlook
:page no. 54-61, December 2013| Indonesia- US import

Competitive Analysis for Export in ASEAN countries based on tariffs:

Product

Philippines

Viet Nam

Malaysia

Singapore

Advantage country

120100

1% tariff

0% tariff

0% tariff

0% tariff

Non-gm crop consumption

120190

1% tariff

0% tariff

0% tariff

0% tariff

Non-gm crop consumption

120810

2.84% tariff

8% tariff

0% tariff

0% tariff

Malaysia, Singapore
Page | 17

230400

1% tariff

0% tariff

India's Export to ASEAN countrie s in 2013

700000

0% tariff

India's Export to ASEAN countries in 2013

1200

649000

600000

1000

500000

800

400000

972
672

703

711

Philippines

Viet Nam

Malaysia

600

Export value in (USD)

400

300000

192000

200000

200
96000

100000
0

Disadvantage due to high

prices in recent month

0% tariff

Philippines

Viet Nam

Malaysia

70000
Singapore

0
Singapore

value/ton (USD)

India signed FTA agreement with ASEAN in 2007. The decision had been taken to lower down import tariffs gradually.
However, Indias soybean export has not been benefited much.

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