SOYBEAN PRODUCTION & ECONOMY OF M.P.

Transcription

1 CHAPTER 2 SOYBEAN PRODUCTION & ECONOMY OF M.P. 2.1 SOYBEAN PRODUCTION AT INTERNATIONAL LEVEL : The history of world soybean production is very old and it goes back to the 18 th century when the seeds of the soybean plant (Glycine Max) were planted. Although soybean have been grown on a commercial scale in East Asia for more than 1000 years, the earliest estimates and records of soybean production was done only in 1900 by Sir A. Hosie. The soybean represents a huge source of high quality, low cost protein. The 96.3 million tones (metric tons) of soybean produced worldwide in 1979 was enough for 23 kg., for each of the world s 4,200 million people. To have an overview of world soybean production and trade and to have better understanding the history of world soybean production and trade, it can be divided into six major phases. These phases are as follows :- I. From ancient times to All production and trade used to take place in East Asia, China having a predominant share as it had been the world s foremost soybean producing country. In the earliest period China produced an estimated 71.5% of the world s soybean, much more than all other countries combined. Other major producers were Manchuria (16.5%), Japan (5.9%), Korea (.5%) and Indonesia less than 1%. 26

2 For centuries Manchuria and North China had shipped soybean by boat to Southern Chinese ports and by the late 1800s exports from Manchuria to Japan increased rapidly. II. The second phase started from 1908 and continued till The phase can be termed as expansion of soybean exports from Manchuria to the West. The first shipment of soybean to the West was made by the Japanese firms from Manchuria to England. Subsequently during the next two decades, export of soybeans and Soy oil from Manchuria to Europe increased rapidly. Soybean production in China proper during this period remained constant on 5.4 million tones per year. III is considered to be the third phase. This phase is stated as rise of soybean production in the United States and decline of exports from Manchuria to Europe. America started to emerge as a major soybean producer surpassing Japan, Korea and Manchuria. During this same period soybean exports from Manchuria to Europe began a steady decline largely due to dissatisfaction by European soybean processors with the quality of Manchurian soybeans, oil and press cake. IV. Phase four advented from the year As a result of World War II the wartime need for domestic sources of fats, oils and meal increased. The United States doubled its soybean production between 1941 and 1942, passing both Manchuria and China in one year and thus America became the world s leading soybean producing country. 27

3 This lead is still been maintained by USA which will be clear in the coming pages. During this phase Manchuria s and China s share of world production continued their steady decline. The first office of soybean grower opened in Hamburg in 1960 followed by offices in Brussels, Vienna and Madrid in 1970 s. The US has been able to maintain this lead due to focus on sales promotion, trade servicing and cooperating with their European customers. V. Leadership of the West over Asia in production and Rise of the US as a major exporter. This phase started from the year 1956, prior to this year the majority of the world s soybeans had been produced in Asia. However in that year the center of world soybean production shifted from Asia to the western hemisphere in total production. At the same time, the US emerged as the world s leading exporter of soybeans, soy oil and soybean meal. VI. Phase sixth is the Rise of Latin America which started Starting in the early 1970 s, Latin America, led by Brazil, began to emerge as a major soybean producing area. In 1974 Brazil production passed that of China and in 1975 Latin America s total production, the major producers being Brazil and Argentina passed that of Asia. Subsequently Latin America also emerged as a major soybean exporter. The forth mentioned figure indicates the global soybean production and consumption from year 2000 to The statistics clearly show that production from the year has grown manifold till

4 Table No. 2.1 WORLD SOYABEAN PRODUCTION AND CONSUMPTION (Million Metric Ton) S. No. Year Production Consumption Source : SOPA GRAPH WORLD SOYBEAN PRODUCTION AND CONSUMPTION Million Metric Tons Production Consumption 29

5 Thus the world soybean production has gone from 178 MMT to 258 MMT and global consumption from increased from 172 MMT to 236 MMT in 10 years. The present world scenario continuing from 2000 to 2010 shows the fact that the major soybean producing countries are USA, Argentina, Brazil and China. These four countries have predominantly captured the world soybean market. The following table helps understanding the pre dominant share of these four countries in soybean production. Table No. 2.2 SOYABEAN PRODUCTION IN LEADING COUNTRIES (Million Metric Ton) S. No. Year Argentina Brazil USA China Source: SOPA 30

6 GRAPH LEADING COUNTRIES SOYBEAN PRODUCTION M illio n M e tric T o n s Argentina Brazil USA China These four leading producers are followed by our country India then Paraguay, Canada and few other countries. In the year 2010 the soybean production at international level has been as mentioned further. 31

7 Table No. 2.3 WORLD SOYABEAN PRODUCTION (Million Metric Ton) Country Million Bushels Million Metric Tons United States 3, Brazil 2, Argentina 1, China India Paraguay Canada Other Total 9, Source: SOPA GRAPH WORLD SOYBEAN PRODUCTION United States Brazil Argentina China India Paraguay Canada Other 32

8 2.2 SOYBEAN PRODUCTION IN INDIA : As seen in the earlier sub chapter India stands at the fifth position as far a soybean production at world level is concerned. Even India has a very old history of soybean production. The prominence of soybean crop in India has been growing ever since its cultivation began in India and infact it is fast growing. More importantly the characteristics of the crop are suitable for the modern style of cropping. In the last few decades Soya has become a cash crop in India. Soya and its derivative products are valued more in terms of human consumption and higher margins to the cultivating farmer in India. With increasing price of groundnut oil and other edible oils in India the demand for soybean has shot up to a large extent. To meet this increasing demand it has become mandatory for the farmers and government of our country to increase the production in India. India being a major producer of soya and its products, domestically faces many challenges and take up measures to enhance soybean production. India is producing the meals which has good growth potential in the domestic consumption and have a high demanding export market. The price of the Soya and its by-products depends on the domestic crop out, global demand and supply scenario and international prices. The farmers in India are provided with institutional support in the form of few organizations like SOPA (Soybean Processors Association of India), DSR (Directorate of Soybean Research) and ASA (American Soybean Association). India is a very vast market and same applies for Soybean as well India is also very large in area and is blessed with many natural resources. Taking advantage of all this production in India has increased manifold. There are many figures and facts that support these statements. Beginning with the area in hectare planted in India, it can be clearly seen from the table below that in the year the area under soybean cultivation was million hectare. The present statistics indicates that in the year it had increased to million hectare. 33

9 Table No. 2.4 AREA UNDER SOYABEAN CULTIVATION IN INDIA S. No. Year Area under Soybean Cultivation (Million Hectare) Source: GRAPH AREA UNDER SOYBEAN CULTIVATION IN INDIA Area (Million Hectares)

10 Soybean yield in India has also shown tremendous increase and improvement. The yield increased from 860 kilogram / hectare in the year to 1006 kilogram per hectare in the year Table No. 2.5 SOYABEAN YIELD IN INDIA S. No. Year Yield (Kilogram / Ha.) Source: GRAPH SOYBEAN YIELD IN INDIA Yield (Kilogram/Hectare)

11 The soybean production in India has increased from million metric ton in the year to million metric ton in the year Table No. 2.6 SOYABEAN PRODUCTION IN INDIA S. No. Year Production (Million Metric Tons) Source: GRAPH SOYBEAN PRODUCTION IN INDIA Production (Million Metric Ton)

12 The following table indicates the value of soybean production in India in terms of rupees. Table No. 2.7 VALUE OF SOYABEAN PRODUCTION IN TERMS OF RUPEES S. No. Year Value (Million Rupees) Source: SOPA GRAPH VALUE OF SOYBEAN PRODUCTION IN RUPEES

13 Looking into currency terms soybean has given great returns to its producers and has proved like a golden harvest not only for the producers of Madhya Pradesh but also of India. Soybean production in terms of rupees has also shown and indicated considerable increment. In the year the value in million Rs. was In the year the value of soybean production has been the highest at million rupees. In the year it was million rupees. Table No. 2.8 ALL INDIA STATE WISE AREA, YIELD & PRODUCTION OF SOYBEAN DURING KHARIF (MONSOON) 2008, 2009 & 2010 Area in Lakh Ha., Yield in Kg per Ha., Production in Lakh MT Year Name of State Area Yield Per Ha. Pro duc tion Area Yield Per Ha. Pro duc tion Area Yield Per Ha. Pro duc tion Madhya Pradesh Maharashtra Rajasthan Andhra Pradesh Karnataka Chattis garh Rest of India G. Total Source: 38

14 Table No. 2.9 INDIAN OILSEED PRODUCTION (In Million Tons) S. No. Oil Seeds Ground Nut Castor Seed Sesame Seed Rapeseed & Mustard Linseed Niger Seed Safflower Sunflower Soybean Total Source : Dept. of Agriculture. The table indicates a clear picture of India excelling in soybean production right from year to year India has witnessed a bumper soybean output in the year at 125 lakh tones, up by 26% compared to the year Despite normal area under cultivation, factor attributing to the increase in output was the favourable monsoon and thereby increasing the yield of the crop by almost 29%. Normal yield of Soybean stand at around 1000 tonnes per hectare which in the year increased to 1350 tonnes per hectare. This report is according to the survey conducted by the Department of Agriculture. 39

15 2.3 SOYBEAN PRODUCTION IN M.P. : Madhya Pradesh (MP) the Soya state of India is known for soybean cultivation and production. Although soybean originated in China and was introduced to India through Himalayan routes but Madhya Pradesh has predominantly captured the share of soybean cultivation. The main reason behind it is the geographical location, soil and climatic conditions prevailing in M.P. To extent the credit also goes to the seed of soybean because it serves as a means for improving the soil through its ability to fix atmospheric nitrogen. As a legume, it is an ideal component of a sound agricultural system. MP has been designated as the soybean state in the view of rapid as well as concentrated development pattern in 11 out of 45 districts. Area under soybean in MP is nearly 55% of the national area. There is ample of scope to increase the production of soybean in the state. as follows :- From the year 2008 to 2010 the area under cultivation has been Table No AREA UNDER SOYABEAN CULTIVATION IN INDIA AND REST OF INDIA (In lakh metric ton) S. No. Year Madhya Pradesh Rest of India Source : SOPA 40

16 From the previous table it is very clear that with years the area under cultivation in Madhya Pradesh has increased as compared to rest of India. Table No SOYABEAN PRODUCTION IN M.P. AND REST OF INDIA (In Lakh Metric Ton) S. No. Year Madhya Pradesh Rest of India Source : SOPA Again from the table it is indicated that the production in Madhya Pradesh has been increasing and that the production is M.P. is more than that of rest of India. In M.P. the impact of the extension efforts on the part of government and cultivators were clearly visible. By and large, farmers had adopted most of the appropriate technology of soybean production in general and weed management and plant protection measures in particular. This is undoubtedly the brighter part of the coin because M.P. has predominance in area, yield and production of soybean. But as compared to the production and yield in proportion to area is the darker side of the coin. The main reason behind this is that many constraints in recent time such as non availability of short duration high yielding varieties and adequate good quality seeds cause hindrance in achieving higher productivity. Similarly, there has been a slow but steady growth 41

17 in the production of soybean which is attributed to erratic monsoon, poor management, incidence of pest and disease, shattering pods, soybean rust and above all low input technology. However, both this brighter and darker sides apply to those areas in which farmers have made use of latest technology and those farmers those who have not applied the latest technology and production management respectively..table No DIVISION WISE AREA, YIELD & PRODUCTION OF SOYBEAN DURING KHARIF (MONSOON) 2008, 2009 & 2010 Area in Lakh Ha., Yield in Kg per Ha., Production in Lakh MT Name of Division Area Yield Per Ha. Pro duc tion Area Yield Per Ha. Pro duc tion Area Yield Per Ha. Pro duc tion Ujjain Division Bhopal Division Hoshangabad Division Indore Division Jabalpur Division Sagar Division Gwalior Division Rewa Division G. Total Source : Dept. of Agriculture, Bhopal, M.P. 42

18 2.4 M.P. A PROFILE OF ECONOMIC AND INDUSTRIAL ADVANCEMENT : Madhya Pradesh is the second largest state in India covering 9.5% of the country s area. This state is also endowed with rich natural resources, suitable climate and fertile agro climatic conditions. The economy of the state is largely agrarian, employing 77% of the total work force and contributing 40% to the State Domestic Product. Continuous efforts have been made towards industrialization of the state with these continued efforts the state has been able to contribute 8% to employment of the state work force and 23% to State Gross Domestic Product. In the past few years the state has shown a remarkable improvement. The GDP as compared to had registered a growth of approximately 8.49% in the year This report is in accordance to the survey report released by the State s Finance Minister. Table No ECONOMIC STRUCTURE OF STATES S. No. Particulars India Madhya Pradesh Andhra Pradesh Tamil Nadu 1. Agriculture 29% 32% 31% 21% 2. Industry 20% 25% 23% 30% 3. Services 51% 43% 45% 49% 4. Per Capita Income(Rs.) Source: MP Finance Ministry 43

19 From these figures the fact that M.P. has a favourable profile of economic and industrial advancement has been proved. Madhya Pradesh has 11 agro climatic zones and it is the first in producing soybean, pulses, grams and garlic. M.P. stands in the list of first five states in producing wheat, chili and coriander in the country. It is also one of the leading states in growing banana, orange and mango and lemon fruits. The State contributes the highest 30% forest area to the total forest area of the country. The State is leading in textile manufacturing, automobiles, food processing, soya processing, engineering and agricultural equipment manufacturing. State has witnessed significant growth in large and medium industrial sector. Madhya Pradesh, being among the fast growing states, is blessed with many treasures. Active initiative taken by the Government of Madhya Pradesh to transform the State into a developed one and promote it as potential investment destination is now geared up. 2.5 AGRICULTURAL MAP OF M.P. : As stated in the earlier chapter Madhya Pradesh is a major agriculture oriented State of India. There many facts that support M.P. as a major agro based State. These facts are as follows :- Of the total gross area under crop cultivation in the state, 59% is sown in the Kharif season while the other 41% is sown in the Rabi season. About 24% of the area under crop cultivation in the state can be used for cultivation throughout the year. 44

20 The state is the largest producer of oilseeds. The state leads the production of spices and is the largest producer of garlic, accounting for around 37% of the total national production. Wheat, soybean, sugarcane, rice, cotton, rapeseed, mustard and arhar accounts for about 83% of the total production of the major crops. In the year , Madhya Pradesh was the largest producer of pulses, oilseeds and soybean in the country. Agricultural Map of Madhya Pradesh 45

21 Agricultural Production in M.P. Table No KHARIF PRODUCTION IN M.P. YEAR 2010 (Area in lakh hectare / Production in lakh metric ton) S. No. Crop Area Production 1. Paddy Other Cereals Pulses Oilseeds Cotton Source : Survey by State Department of Agriculture. Table No RABI PRODUCTION IN M.P. YEAR 2010 (Area in lakh hectare / Production in lakh metric ton) S. No. Crop Area Production 1. Wheat Other Cereals Grams Oilseeds Source : Survey by Department of Agriculture. 46

22 2.6 ECONOMIC SCENARIO IN M.P. : To have a detailed study of economic scenario prevailing in the state of Madhya Pradesh following key factors have been studied :- Economy of Madhya Pradesh. Madhya Pradesh GSDP. Investment climate of state determinant factors. Cost of doing business in M.P. Per Capita GSDP. Madhya Pradesh NSDP. Economy of M.P. Madhya Pradesh economy is based on agriculture, forest products, industries, mineral resources and cottage industries sectors. The economy of Madhya Pradesh depends mainly on agricultural sector as more than 80% of the people of the State depend upon this sector for their livelihood. The agricultural sector contributes around 46% of the State s economy. As stated in the earlier chapters the various kinds of crops grown in the state of Madhya Pradesh are rice, pulses, wheat, oilseeds, grams, soybean and maize. This sector has given a major boost to the economy in Madhya Pradesh. The economy in the state of Madhya Pradesh also gets its revenue from the forest product sector as the state has a forest cover of around 1.7 million hectares. The various kinds of forest products 47

23 available in the state of Madhya Pradesh are teak wood, sal wood and bamboos. These products are sold all over the country thus contributing to the economy of Madhya Pradesh. The economy of M.P. also depends for its revenue on the mineral resources because the state has rich storehouse of minerals. The various kinds of minerals found in the state are dolomite, limestone, copper ore, bauxite and coal. The mineral sector has also created a favorable economic scenario in M.P. According to the survey and study conducted by the India Brand Equity Foundation (IBEF) many facts about M.P. has come up. This survey although was conducted in the year still serves as a guideline even today to understand and know the economic scenario of Madhya Pradesh. Madhya Pradesh s GSDP At current prices, the Gross State Domestic Product (GSDP) of Madhya Pradesh for was US$ 35.4 billion. Between and , the average annual GSDP growth rate was 9.5 percent. The growth in GDSP has primarily come about as a result of the growth in mining and quarrying, construction and services sectors. 48

24 Madhya Pradesh s GSDP (US$ billion) Source: Madhya Pradesh in figures Economy Parameter Madhya Pradesh All States Source GSDP as percentage of all states GSDP Average GSDP growth rate (%)* Per capita GSDP (US$) CMIE, as of , current prices CMIE, to , current prices CMIE, as of , current prices Physical Infrastructure Installed power capacity (MW) GSM Cellular subscribers (No) Broadband subscribers (No) 8, ,398.5 Central Electricity Authority, as of March ,010, ,586,162 Cellular Operators Association of India, as of June ,951 4,981,976 As of October

25 Parameter Madhya Pradesh All States Source National Highway Length (Km) 4,670 70,548 Ministry of Road Transport & Highways, Annual Report Airports (No) Industry Sources Social Indicators Literacy rate (%) Birth rate (per 1,000 live birth) Census of India, Ministry of Health & Family Welfare, RHS Bulletin, March 2008 Ease of doing business FDI inflows (US$ billion) Outstanding investments (US$ billion) 0.2* Department of Industrial Policy and Promotion, April 2000 to May ,972.6 CMIE, as of March 2010 Industrial infrastructure PPP projects (no) SEZs (No) Functional as of August 2010, *Includes Chhattisgarh PPP. : Public Private Partnership, SEZ : Special economic zone. Parameter Madhya Pradesh Government Policy support Sectors with specific policies Availability IT, biotechnology, SEZ, tourism, food processing. Large base of industrial labour available. 50

26 Determination of Investment climate of a state by a mix of factors Skilled and cost effective labour Labour market flexibility Labour relations Availability of raw material and natural resources Procedures for entry and exist of firms Industrial regulation, labour regulation, other government regulations Certainty about rules and regulations Security, law and order situation Resources / Inputs Incentives to industry Investment climate of a state Regulatory framework Physical and social infrastructure Tax incentives and exemptions Investment subsidies and other incentives Availability of finance at cost effective terms Incentives for foreign direct investment (FDI) Profitability of the industry Condition of physical infrastructure such as power, water, roads, etc. Information infrastructure such as telecom, IT, etc. Social infrastructure such as educational and medical facilities. 51

27 Madhya Pradesh State Profile There are 11 agro climatic conditions and a variety of soils available in the state to support cultivation of a wide range of crops. Around 31 percent of the total area of the state is forest land which is over 12 percent of the total forest area of India. The most commonly spoken language of the state is Hindi English and Marathi are the other languages used. Cost of doing Business in Madhya Pradesh Parameter Madhya Pradesh Source Cost of land (per sqm) US$ 3 to US$ 11 Madhya Pradesh State Industrial Development Centre Hotel costs per room per night (four star, five star hotel) Residential rent (per month for 1,200 sq.ft. apartment) Commercial rent (Per sq.ft. per month) Power cost (industrial, high tension) Labour (man year) US$ 90 to US$ 120 US$ 130 to US$ 220 US$ 0.7 to US$ 1.1 Monthly fixed charges : US$ 3.5 (11KV) to US$ 7.4 (132 KV) Energy charges : US 7.3 cents per kwh (11KV) to US 6.5 cents per kwh (132 KV) US$ 1,075 to US$ 1,160 Leading hotels in the state Industry sources Industry sources Madhya Pradesh State Electricity Board Department of Labour, Government of Madhya Pradesh. 52

28 Per Capital GSDP The per capita GSDP of Madhya Pradesh increased almost 1.8 times from US$ in to US$ in In , the per capita GSDP grew at about 12 percent over the previous year. Robust tertiary sector has helped Madhya Pradesh increase its average per capita GSDP by around 7.4 percent between and Per capita GSDP of Madhya Pradesh Source: 53

29 Madhya Pradesh s NSDP The Net State Domestic Product (NSDP) of Madhya Pradesh was about US$ 30.7 billion in The average NSDP growth rate between and , was about 8.8 percent. Madhya Pradesh s NSDP (US$ billion) Source: 54

30 2.7 ROLE OF SOYBEAN IN THE ECONOMY OF M.P. : Madhya Pradesh is rightly called the Soy state of India. There are many arguments, facts and figures which truly justify this statement. In the earlier Chapter 2.2 Soybean Production in India it has been seen that out of the few states cultivating and producing soybean, the state of Madhya Pradesh has a predominant share in it. The area under cultivation in the year 2010 was lakh MT and the production in the same year was lakh hectare. Thus, it can be said that soybean has played a very vital role in the development of the economy of Madhya Pradesh. This state has come to be known as the Soy state, in view of rapid as well as concentrated developments which the state has experienced. Soybean was first introduced to the Indian states of Uttar Pradesh and Madhya Pradesh. The main reason for this was that in these states, cultivated land was left fallow during the Kharif season in order to preserve moisture for the Rabi season (October to March). The fast maturing varieties of soybean introduced did not affect the sowing of a second crop in Rabi. Madhya Pradesh being the largest producer of soybean in India has helped India in soybean export as well. Soybean has helped India as well as Madhya Pradesh in earning and collection of a useful commodity and that is foreign exchange. Before Chattisgarh became a separate state, M.P. was the largest state in terms of area and had soybean not grown or cultivated the potential resources of M.P. would not have been fully utilized. Putting it 55

31 the other way it is because of soybean the economy of M.P. has risen to such a large extent. Talking about the soybean processing industry, it is one of the most flourishing industries of M.P. giving employment to a very large number of people starting from its cultivation to processing and then to final distribution of soybean products. As it is known that the economy of Madhya Pradesh is very heavily dependent on agricultural sector and the people of the state are also dependent heavily on this sector. It is largely due to soybean production that M.P. has been able to contribute more than 20% to the economy of India as far as agricultural sector is concerned. The soybean producing districts of India are concentrated in M.P. In the last two decades the soybean yield has also increased manifold thus supporting the further development of M.P. 2.8 INTRODUCTION TO AREA OF MALWA REGION OF M.P. : As the study of this thesis is to be done with special reference to the Malwa region so it is very important to mention the introduction to the area of Malwa region of M.P. Although it may appear close to the study of Geography but still it was felt important that a geographical study of this area is conducted because ultimately the production and yield of any crop mainly depends of geographical conditions of that area. The prime reason why Malwa region is rich in soybean production is its location and other geographical parameters. Geologically, the Malwa Plateau generally refers to the volcanic upland south of the Vindhya Range. Politically and administratively, the historical Malwa region includes the 56

32 districts of western Madhya Pradesh and parts of south eastern Rajasthan. The definition of Malwa is sometimes extended to include the Nimar region north of the Vindhyas. MAP OF MALWA REGION OF M.P. The Malwa Region occupies a pleateau in western Madhya Pradesh and south eastern Rajasthan (between N E N E and N E N E) with Gujarat in the West. The region includes the districts of Dewas, Dhar, Indore, Jhabua, Mandsaur, Neemuch, Rajgarh, Ratlam, Shajapur, Ujjain and parts of Guna and Sehore and the Rajasthan districts of Jhalawar and parts of Banswara and Chittorgarh. Malwa is bounded in the north east by the Hadoti region, in the north west by the Mewar region, in the west by the Vagad region and Gujarat. To the south and east is the Vindhya Range and to the north is Bundelkhand upland. 57

33 The plateau is an extension of the Deccan Traps, formed between 60 and 68 million years ago. In this region the main classes of soil are black, brown and stony. The volcanic, clay like soil of the region owes its black colour to the high iron content. The soil requires less irrigation because of its high capacity for moisture retention (one of the main reason for bumper soybean crops). The other two soil types are lighter and have a higher proportion of sand. Coming back to the whole Madhya Pradesh the following district are rich in soybean production. Table No AREA SHARE OF SOYBEAN IN DIFFERENT DISTRICTS OF MADHYA PRADESH. S. No. District Year 2010 (Area in lakh hect.) 1. Hoshangabad Indore Betul Ujjain Dewas Sehore Shajapur Dhar Chindawara Raisen Rajgarh Vidhisha Narsinghpur Guna Bhopal Tikamgarh Source: Department of Agriculture, Bhopal 58

34 The table clearly indicates that the major cities and towns of Malwa region have a predominant share in the production of soybean in M.P. A brief exposition of the factors which are postulated to have contributed to the concentrated development of soybean crop in the Malwa region are as follows :- FACTORS CONTRIBUTING TO DEVELOPMENT OF SOYBEAN IN THE DISTRICTS OF MALWA S. No. District Factors 1. Ujjain i. Planting in Kharif fallow. ii. Popular in irrigation command area. iii. An intercrop with Sorghum. iv. Soya extraction plants in the district. v. Demand by extraction plants in Indore. 2. Shajapur i. Planting as an intercrop with cotton and Sorghum. ii. Irrigated command area. iii. Assured market for raw soybean due to demand by processing plants. 3. Dewas i. Demand by solvent extraction plants at Indore. ii. Establishment of plants at Dewas. iii. Popular as an intercrop with Sorghum. 4. Sehore i. Planting in Kharif fallow. ii. Irrigated command area. iii. Existence of Soybean extraction plants. iv. Specific effort by the extension team of Agricultural college of Sehore. 59

35 S. No. District Factors 5. Rajgarh i. Popular as an intercrop with Sorghum. ii. Replacing Sorghum as a substitute sole crop. iii. Increase soybean area in irrigated command area. 6. Dhar i. Planting in Kharif fallow. ii. Irrigated command area. iii. Popular as an intercrop with cotton. 7. Indore i. Intercropping with Sorghum and Cotton and Groundout area as a sole crop. ii. Demand for soybean by processing industries. The area of Malwa region alone accounted Lakh MT of production in 2010 out of Lakh MT of the state of M.P. The soybean processing industry is well developed in Malwa region. There are huge soybean processing plants in the district of Indore, Dewas, Ujjain, Hoshangabad, Ratlam and Dhar. * * * * * 60