“Comparative study of Farmers who cultivate soybean & Mustard.”

Summer Internship

In

Jaypee Soya Proccessing Unit RewaYear 2010-2011

Submitted to Submitted by

Dr. RP Singh Sumit Maheshwari

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Contents

SYNOPSIS OF SUMMER PROJECT...............................................3

PREFACE.........................................................................................4

CERTIFICATE..................................................................................5

ACKNOWLEDGEMENT...................................................................6

DECLARATION………………………………………………………….7

EXCLUSIVE SUMMARY..................................................................8

RESEARCH DESIGN…………………………………………………...9

STATEMENT OF PROBLEM..........................................................14

INTRODUCTION OF EDIBLE OIL INDUSTRY.............................16

JAYPEE SOYA UNIT……………………………..……………………21

DATA ANALYSIS………………………………………………………22

REASONS FOR LESS PRODUCTION……………………...………25

SOIL SAMPLING……………………………………………………….32

SOIL FERTILITY............................................................................36

SOYA BEAN OIL EXTRACTION PROCESS……………………….38

CONCLUSIONS………………………………………………………..40

FINDING & SUGGESTIONS..........................................................44

BIBLIOGRAPHY.............................................................................48

APPENDIX……………………………………………………………...49

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SYNOPSIS OF SUMMER PROJECT

Title of research project:

Comparative study of Farmers who cultivate soybean & Mustard.

Objective:

To make a comparative study of Farmers of Rewa District (preference of crop, problems during cultivation)

To analyze the preferred place to sell their crop.

Methodology:

As 45 villages were allotted to me, I have to meet with farmers enquire about their methods of cultivation, kinds of crops for various seasons, how they manage water supply, where they sell the crop

Limitation:

Sample Size Limited

Data is Limited

Location is Rewa only

Significance :

Through the research came to know that the condition of farmers in India, how they cultivate crops in unfavorable conditions.

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PREFACE

This project is undertaken to fulfill the project work component of the PGDBM & MBA programme (2ND Semester).

The project was prepared under the guidance of Dr R P Singh who has helped me in making of this project. This project is based on the survey of villages (from REWA-MANGAVAN-GUDH) .To make the topic more clearly I have gone through visiting villages and also taken the help of websites

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CERTIFICATE

This is to certify that Mr. SUMIT MAHESHWARI is a regular student of NEW

DELHI INSTITUTION OF MANAGEMENT NEW DELHI. He has conducted an

authentic research on the topic “Comparative study of Farmers who

cultivate soybean & Mustard..” and has completed her research

methodology report successfully under the able guidance of Dr R P Singh.

The report is being taken up as a part of summer research work for Post

Graduation Diploma in Business Management & Master Of Business

Management 2010 and being submitted thereof.

Dr R P Singh

ACKNOWLEDGEMENT

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I would like to grab this opportunity to praise the Almighty who has

inherited me with the intellect which has enabled me to prepare this research.

Then I would like to thank Jaypee Soya Processing Unit team and my

research guide Dr R P Singh. For providing me with this opportunity of

conducting this research work and helping me throughout the project. Sir

without your precious guidance I won’t be able to complete this project. I

would also like to thank my parents and my friends who have always been

very cooperative whenever I need them. In the end I would like to thank all

those who have been associated with my research project.

Sumit Maheshwari

DECLARATION

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I hereby declare that this project report is the result of hard work and determination of Sumit Maheshwari.

This is to further declare that this project report is authentic and genuine work of Sumit maheshwari and not submitted by any other student previously.

DATE: Sumit Maheshwari

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EXCLUSIVE SUMMARY

The topic of my research is based on the Comparative study of Farmers who cultivate soybean & Mustard.. It is basically occupying space in the minds of customers on the parameter of superiority; over the other states give competition in the similar business.

We decided to collect primary data through survey by using data collection sheet provided by the company. To do this ,we first analyzed the various parameters that contributes to the positioning of a brand .We went through a lot of options and finally narrowed down to few major parameters-

No. of farmers cultivating soybeanEducation of farmersAge wise Kinds of farmersSoil SamplingCooperative SocietySource of obtaining agri-inputs

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RESEARCH DESIGN

Basically research is a systematic enquiry aimed at providing information that will solve managerial problems. A good design means that good research results can be obtained with minimum utilization of time, money and effort. Thus research design has to be developed very carefully as it forms the foundation for the entire research process that follows.

An ideal research design should consider the following factors:

Identifying the exact research problems to be studied. The objective of the research The process of obtaining information Availability of adequate and skilled manpower Availability of adequate financial resources for carrying out research.

Business research can be defined as systematic enquiry that gives information to guide businesses in decision making.

A. TYPES OF RESEARCH DESIGN:

It is very important to select an appropriate research design before starting the research. There are several research design approaches which can be classified as:

EXPLORATORY STUDIES:

They are carried out to make problems suited to more precise investigation or to frame a working hypothesis from an operational perspective. They help in understanding and assessing critical issues of problems. They can not be used in cases where a definite result is desired. It included techniques like primary data analysis, surveys.

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1. DESCRIPTIVE STUDIES:

Unlike exploratory studies, these come under formal research where the objectives are clearly established. In these, a researcher gathers details about all aspects of a problem situation. They form the basis for analytical, experimental and quasi-experimental studies which help in developing hypothesis.

2. CAUSAL STUDIES:

The basic aim of causal studies is to identify the cause and effect relationship between variables. The basic premise of the causal relationship is that when we do a particular thing (cause), it gives rise to another thing(effect).There are three types of relationship that can arise-

(a) symmetrical(b) asymmetrical (c) reciprocal

B. DATA COLLECTION

A. Primary SourcesAt times, secondary data might prove to be inadequate or of no use to the researcher for making further marketing decisions. In such cases, the researcher has to go in for primary data research employing survey research methods. Surveys are normally carried out to obtain primary data. Primary data is the data which is gathered first hand to answer the research question being investigated.

In our project the survey was conducted using questionnaire and meeting the respondents in person to get them filled.

B. Secondary Sources

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A secondary data study is concerned with the analysis of already existing data that is related to the research topic in question. In secondary studies, secondary data is studied in order to analyze the future of a product. Secondary data is based on source, category, medium and database.

Secondary data is used by managers as it is cheaper and takes less time to gather, thus saving them a lot of money and time that they would have otherwise spend in gathering primary data. It may provide alternative data methods that can be used for primary research. Also it generates requisite information for better creativity.

C. SCALING TECHNIQUES:

Rating

We have asked the respondents to rate various parameters according to the preference on the scale of ten with 10 representing the ‘most preferred’ and 1 the ‘least preferred’. The respondents had a choice of giving the same rating to more than one parameter.

C. QUESTIONNAIRE DEVELOPMENT AND PRE-TESTING:

A properly designed questionnaire can tap the necessary information from the respondents. In framing a questionnaire the researcher must ensure that the questions are designed to draw information that will fulfill research objective. Also the researcher must make sure of the target population for the same. A questionnaire contains all the close ended questions. These questions give respondents a finite set of specified responses to choose from.

RESEARCH METHODOLOGY

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DATA COLLECTION

Research instrument: - Data sheet

Sample size: - 45 villages

Time duration: - 40 days

Data Collection: - Primary data directly collected from respondents.

Secondary data –Internet

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TECHNIQUES OF DATA ANALYSIS

Survey is undertaken to learn to learn about people’s knowledge, benefits,

preferences, satisfactions and so on, and to measure these magnitudes in the

population. Survey is done to collect the primary data collection is more

costly, but the data are mostly more relevant to the issue at hand. In this

market research project we used survey with questionnaire with structured

designed questions.

The questionnaire has become the most common instrument in collecting

primary data. Broadly speaking a questionnaire consists of a set of questions

presented to respondents for their answers. However some responses given

by respondents may be misleading because of the unwillingness of

respondents to provide information because of inadequate knowledge of the

language or product. Thus great care must be taken while preparing a

questionnaire and while selecting a sample.

Questions of structured disguised type has an advantage to disguise and thus

respondents don not know what is being measured and hence are not biased

in their answers.

In the project, great care has been exercised to select the

sample. Although this is a convenient sample but an effort has been made to

include farmers cultivated soybean (kharif crop) & Mustard (Ravi crop) as

respondents so as to know exactly figure of soybean production in a particular

belt.

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STATEMENT OF PROBLEM

Slow agricultural growth is a concern for policymakers as some two-thirds of India’s people depend on rural employment for a living. Current agricultural practices are neither economically nor environmentally sustainable and India's yields for many agricultural commodities are low. Poorly maintained irrigation systems and almost universal lack of good extension services are among the factors responsible. Farmers' access to markets is hampered by poor roads, rudimentary market infrastructure, and excessive regulation.

—World Bank: "India Country Overview 2008"

The low productivity in India is a result of the following factors:

According to World Bank's "India: Priorities for Agriculture and Rural Development", India's large agricultural subsidies are hampering productivity-enhancing investment. Overregulation of agriculture has increased costs, price risks and uncertainty. Government intervenes in labor, land, and credit markets. India has inadequate infrastructure and services. World Bank also says that the allocation of water is inefficient, unsustainable and inequitable. The irrigation infrastructure is deteriorating. The overuse of water is currently being covered by over pumping aquifers, but as these are falling by foot of groundwater each year, this is a limited resource. Illiteracy, general socio-economic backwardness, slow progress in implementing land reforms and inadequate or inefficient finance and marketing services for farm produce.Inconsistent government policy. Agricultural subsidies and taxes often changed without notice for short term political ends.The average size of land holdings is very small (less than 20,000 m²) and is subject to fragmentation, due to land ceiling acts and in some cases, family disputes. Such small holdings are often over-manned, resulting in disguised unemployment and low productivity of labour.Adoption of modern agricultural practices and use of technology is inadequate, hampered by ignorance of such practices, high costs and impracticality in the case of small land holdings.Irrigation facilities are inadequate, as revealed by the fact that only 52.6% of the land was irrigated in 2003–04, which result in farmers still being dependent on rainfall, specifically the Monsoon season. A good monsoon results in a robust growth for the economy as a whole, while

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a poor monsoon leads to a sluggish growth. Farm credit is regulated by NABARD, which is the statutory apex agent for rural development in the subcontinent. At the same time overpumping made possible by subsidized electric power is leading to an alarming drop in aquifer levels.

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Introduction to Edible Oil Industry in India

Climatic conditions in India favor growing a variety of oilseeds. On the demand side, a growing population and vastly varied dietary habits have ensured a thriving market for edible oil in the country. In fact, there is a substantial demand overhang, which is expected to continue for some years. At present, this is offset by imports that cater to almost half of the total domestic consumption. With cheap imports threatening to cripple the domestic industry, the government is walking a tightrope between filling the demand supply gap and the political need to keep the domestic industry in good health. Unorganized, medium and small players dominate the industry. Hence, quality remains a concern. There is need for better regulatory control to protect consumers.

An average Indian's yearly edible oil requirement has gone up from 7.0 kg in 1996-97 to 11.8 kg in 2000-01. Despite the variety of oilseeds grown in India, the country imports a substantial quantity of edible oil, which also works out cheaper. Allied factors contributing to imports are the higher cost of cultivation in India and uneconomic oil extraction systems.

Oilseeds in India account for around 5.0 percent of the Gross National Product (GNP) and 14.0 percent of the country's area under cultivation of crops. Castor, Groundnut, Linseed, Niger, Rapeseed, Mustard, Safflower, Sesame and Sunflower are some of the major oilseeds grown. India produces 10 percent of the world's oilseeds, but has a low productivity of around 850-900 kg per hectare (compared to a world average of around 1,100-1,350kg/hectare).

The amount of oil extracted from the seed varies with the type and quality of seed. In many cases, the oil recovery rate is upwards of 30.0 percent with Sesame accounting for a high 45.0percent.

Domestic consumption of edible oils has been growing at 4.0-5.0 percent a year. The consumption in 2001-02 was around 25.75 million tons. Non-packaged oils account for nearly 50.0 percent of consumption in both urban

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and rural markets. In the remaining 50.0 percent contributed by packaged oils, branded oils constitute a small portion of approximately 10.0-15.0 percent.

Success of Soybean in India

To deal with the country’s perennial food shortages, a total of 23 agricultural universities were established in India during 1960–63 (on the land-grant pattern), supported by the Government of India and the United States Agency for International Development (USAID), and selected universities from USA. Also, several projects to boost food production in the mid-1960s received synergistic support from agriculture-related industries and the Government, which not only ensured seed production, farm credit, irrigation water, fertilizers, and pesticides, but also provided food storage and processing capacity to create a market for the produce. The country’s agriculture was about to take off, with improvements already under way for dwarf wheat (Triticum aestivum) and rice (Oryza sativa) varieties. At the same time, the growing protein shortage in the country due to the stagnant pulse production also became apparent, and efforts were initiated to take a fresh look at soybean cultivation in India.The pioneering work on testing new soybean varieties in India was initiated by GBPUAT, Pantnagar, and the Jawaharlal Nehru Krishi Vishwa Vidyalaya, Jabalpur, in collaboration with the University of Illinois, USA. The preliminary trials conducted at Pantnagar and Jabalpur in 1965–66 using soybean varieties from southern USA were very encouraging. Some of the varieties, such as Bragg and Hardee, for example, yielded 3 to 4 t ha-1 within 110–130 days. These yields were 200% to 300%higher compared with the average yields of 1–1.5 t ha-1 from other pulses such as mung bean (Vigna radiata), black gram (Vigna mungo), and pigeonpea (Cajanus cajan). This was very encouraging,because the annual production of pulses and oilseed crops in India had plateaued at 11–12 million t,and the rapid increase in population was reducing the per-person availability of protein and oil, resulting in serious malnutrition.These results prompted the Indian Council of Agricultural Research (ICAR) to initiate, on 1 April1967, an all-India project for coordinated research on soybeans, with the main centers located atPantnagar, Jabalpur, and Delhi, and several sub-centers across the country. Substantial funds werecommitted to the project by ICAR as well as USAID, which was providing technical assistance to anumber of agricultural universities in India at that time. Each main center had at least one breeder, one agronomist, one plant pathologist, one entomologist, one microbiologist, one food scientist, and one economist. Varietal trials were conducted at several locations in 1967 and 1968, and

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based on outstanding performance, Bragg (a soybean variety from Mississippi, USA) was released in 1968 for general cultivation. Sizable quantities of seed were imported and multiplied on the farm at PantnagarUniversity and on large farmers’ fields around Pantnagar in 1969. The first commercial crop was grown by farmers in 1970 and, with this, came numerous problems, questions, and challenges. First of all, Bragg seeds produced in India germinated poorly on farmers’ fields and the yellow mosaicvirus – which was earlier restricted to mung bean and had been noticed only sporadically on soybean – became very serious on farmers’ fields (Nene, 1972). This was further complicated by a severe rust epidemic, which had not been noticed at all before (Singh et al., 1974). As if this were not enoughdiscouragement to the farmers, their produce could find no market (Rathod, 1976). Soybean’s detractors caused further confusion among the farmers and policymakers, overemphasizing antinutritional factors and forecasting that soybean would compete with other food crops and upset the country’s food balance, which was already precarious. A letter from ICAR came to the soybean coordinator at Pantnagar with a threat that if solutions to yellow mosaic, rust, and other production problems were not found soon, the project would be phased out. The soybean research team was, thus,faced with multifaceted problems that needed immediate solutions, and the young Indian scientists at Pantnagar and other centers were determined to make their efforts a success (Singh and Saxena,1979).

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Indian Firm Jaiprakash Associates Unexpectedly Enters Vegetable Oil Processing Industry

The company, which is targeting annual revenue of Rs 400 crore from the business by FY12, did not explain the synergies between the edible oils business and its mainstay infrastructure businesses, merely disclosing that the oil processing plant will be set up in Rewa in Madhya Pradesh where it has a strong presence in the power and cement sectors.

"The plan is to procure oil seed from the farms in 100-km radius of Rewa. We want to turn Rewa into the most potent force in soya farming and ensure that farmers get the best price," said Manoj Gaur, executive chairman of Jaiprakash Associates.

The growth prospects of the edible oil business in India have attracted interest from private equity and hedge funds. Baring Private Equity Partners Asia had picked up an 8.86 percent stake in KS Oils for Rs 90 crore in 2007. Citigroup Venture Capital International also owns a stake in KS Oils.

The group with interests in cement, construction, real estate, hotel and power sectors has its biggest cement plant in Rewa in Madhya Pradesh and has also two more thermal power plants under construction in the state. The oil processing unit, which will have a capacity of 1 lakh tonnes per annum each for mustard and soya oil, will commence production in November 2010.

The group's foray into edible oil will pit it against the likes of groups such as KS Oils, Adani Wilmar, Ruchi Soya, ITC, NDDB, Cargill and the Bhaskar Group. Its proposed brands -- whose names Mr Gaur declined to reveal -- will compete with NDDB's Dhara, Adani's Fortune, Agro Tech's Sundrop, Cargill's NatureFresh and Bungee's Dalda. Madhya Pradesh, Rajasthan and Maharashtra are the major producers of edible oil, with MP accounting for almost half of total domestic soya produce. India consumes around 13 million tonnes of edible oil per annum, which includes 5.5 million tonnes of imported oil.The rapid increase in demand for edible oil has prompted several players to expand processing capacity, leading to difficulties in seed procurement during

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the off-season, which extends for up to six months a year for both soya and mustard. The government allows import of edible oil, but not of oil seed.

So, during the off season, oil processing companies have to simultaneously contend with high seed prices and cheap oil imports. For local edible oil companies, there is an attractive export market for oil cakes -- a by-product of oil processing, which is used as cattle feed.

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Jaypee Soya Unit

Starts of Jay Prakash Associates Limited:-

Jay Prakash Associate limited J.P. Nagar Rewa Thanks for profit of every

famers of Rewa Division to join directly to the faster.

Jay Prakash Associate limited gram Chizwar is gown to start Adams Soya

Processing unit where is to be known as J.P. Soya Processing unit.

In processor unit 300 meter ton Soybean/Mustered will be utilized from

which 54 metric ton oil and 240 metric ton food elements will be

manufactured.

9000 metric ton Soybean / Mustard food material will be required for

processor plant yearly.

In India M.P. is highest grown of Soybean as which its share is 54%.

So Thousand ton Yearly soybeans and 6 thousand ton Mustard every

year is the Grown of Rewa. Which is the 86% Soybean and 80% mustard

store of State?

Growth of soybean in district is something 5-6 quintal per hector. This is

less then 40% of other state.

Growth of Mustard is also 3 quintal per hector. This is also less then 30%

of other state.

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DATA-ANALYSIS

Age Group

No. of farmers

30-40 2440-50 6250-60 17460-70 8570-above 29Total 374

6%

17%

47%

23%

8%

Age of farmers

30-4040-5050-6060-7070-above

In Rewa district 69% of farmers are age of between 50-70 age group 60-70 years of farmers are doing farming for past 30-40 years & they are wholly dependent on farming so they are doing it. As far as age group 50-60 doing farming to follow there tradition.

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44%

23%

11%

5%

16%

Education of farmers

PrimaryMiddleHSCSSCGraduate or Post Graduate

As far as e is concern of farmers are necessary for more production. If we see the chart only 16% of farmers are done UG/PG. It shows that the basics of good farming is lacking just because of poor education. Though the farmers produce good crop, but they gives more emphasis to traditional method rather than modern methods.ex:1 acre= 4 quintals (traditional method), 1acre= 6-7 quintals (modern method).

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Education of farmers No. of farmersPrimary 165Middle 87HSC 42SSC 20Graduate or Post Graduate 60Total 374

Kinds of farmers No. of farmersLarge 74Medium 77Small 111Marginal 112Total 374

20%

21%

30%

30%

Kinds. of farmers

LargeMediumSmallMarginal

Total 40% of farmers consists of large & medium, it show that why particular this region is major producer of soybean of the state is producing less than its capacity. Many farmers sale there land and they settled in city. Reason is simple fewer prices given to the farmers leads to demotivation and a bad impact on farming if large & medium type farmers feels the negligence than small & marginal farmers conditions is worst.

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Reason for Less production

Weather most importantly during the pod bearing period.

Soybean is basically a summer crop, as it needs a hot and humid climate to prosper. It is a bush like green plant which borne the soy seeds. The soybean plant usually needs 2 months to get mature. When the seeds start to get mature, the leaves of the plant start to fall. This is the stage when the harvesting of this crop is done. In June, soybean crop is usually sown in India i.e. it is a kharif crop. In some states, it is cultivated two times a year. The harvesting period for soybean crop in India comes around September and October. It is a highly dependent on rain and a change in the rainfall pattern affects the production of soybean.

If we see the rainfall forecast for the current year it is going to be scarcity of waterReport of weather department.

District-wise Rainfall from 01.06.2010 to 16.06.2010 in Madhya PradeshIn MM

 Rain fall for the week ending on

16.06.2010Rain Fall for the period from 01.06.2010 to

16.06.2010

District Actual NormalDef or Excess

%Departures Actual Normal

Def or Excess %Departures

EAST MP                ANUPPUR 0 35 -35.0 -100 0 61 -61.0 -100

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WEST MP                ALIRAJPUR 35.9 20.2 15.7 78 42.1 33.7 8.4 25ASHOKNAGAR 0.3 12.4 -12.1 -98 0.3 17.7 -17.4 -98BARWANI 29.3 26.3 3.0 11 29.3 43 -13.7 -32BETUL 42.7 21.1 21.6 102 42.7 32.8 9.9 30BHIND 4.3 8 -3.7 -46 4.3 14 -9.7 -69BHOPAL 20.4 15.4 5.0 32 20.4 28.1 -7.7 -27BURHANPUR 0 24.7 -24.7 -100 0 42.7 -42.7 -100DATIA 4.2 7.9 -3.7 -47 4.2 12.9 -8.7 -67DEWAS 22.8 25.2 -2.4 -10 22.8 43.1 -20.3 -47DHAR 7.9 21 -13.1 -62 19 38.2 -19.2 -50GUNA 2.2 14.2 -12.0 -85 2.2 23.9 -21.7 -91GWALIOR 5.6 11 -5.4 -49 10.6 17.4 -6.8 -39HARDA 0 20.1 -20.1 -100 0 29.6 -29.6 -100HOSHANGABAD 7.7 22.4 -14.7 -66 7.7 38.6 -30.9 -80INDORE 29.2 20.9 8.3 40 35.7 34.5 1.2 3JHABUA 0 25.9 -25.9 -100 0 38.9 -38.9 -100KHANDWA 7.3 22.1 -14.8 -67 7.3 34.2 -26.9 -79KHARGONE 13 25.7 -12.7 -49 17.1 43.3 -26.2 -61MANDSAUR 2 14.1 -12.1 -86 2 22.8 -20.8 -91MORENA 0 8 -8.0 -100 0 12.1 -12.1 -100NEEMUCH 14.6 15.6 -1.0 -6 15.9 22 -6.1 -28RAISEN 54.4 17.4 37.0 213 54.9 30.1 24.8 82RAJGARH 12.3 16.2 -3.9 -24 12.3 27.3 -15.0 -55RATLAM 2.8 17.3 -14.5 -84 2.8 28.5 -25.7 -90SEHORE 0 18.3 -18.3 -100 0 32.4 -32.4 -100SHAJAPUR 6.3 20.8 -14.5 -70 6.3 30.8 -24.5 -80SHEOPUR 2 11.6 -9.6 -83 13 17.2 -4.2 -24SHIVPURI 12.5 11.3 1.2 11 15.6 21.2 -5.6 -26UJJAIN 7.1 25.7 -18.6 -72 9.7 38.4 -28.7 -75VIDISHA 10.3 15.6 -5.3 -34 10.3 29.7 -19.4 -65

Note : In Calculation of Excess, Deficient and their % Rainfall figures are taken correct to 0.1 MM. The Rainfall figures for the period are subject to correction on receipt of data.

* indicates Data Not Received.Legend

: Excess : +20% or moreTR indicates Rain upto 0.4 MMS. Normal : +19% to -19%

Deficient : -20% to -59%Scanty : -60% to -99%

Prices of the competitive commodities including oils.

In the recent past there was drastic decline in the international price of soyabean oil. However, the impact of this decline in the world prices of edible oil had not been passed on to the consumers of the country as the government had imposed regulatory duty in addition to customs duty in the wake of failure of the local manufacturers in slashing prices. The government earlier slapped Rs.6,000 regulatory duty in three phases and merged it with the customs duty to extract maximum benefit from the decline in prices. In the recent past the customs duty on RBD palm oil had been increased to 55 per cent and 46 per cent on the soyabean oil import while regulatory duty had been reduced to Rs.500 per tonne after its adjustment in the customs duty.

The prices of edible oil had crashed in the international market, but the local manufacturers deliberately did not slash the prices of ghee and cooking oil as a result the government increased customs duty and also levied regulatory duty to take advantage of variation in international prices.

Big Gap in Production and Consumption

The present stupendous deficiency in edible oils has become one of the serious most food issues in Pakistan. The total edible oil requirement for the 1998-99 was more than 1.6 million tonnes, of which about one third was produced locally and the rest was imported at the expense of about Rs.44 billion, a huge amount in foreign exchange. The increase in local edible oil production is about 2-3 per cent per annum, while the annual rise in total consumption is 10-11 percent. The rate of increase per annum in local production is sluggish creating a big gap in production and consumption, which is met through imports.

Extinction of Extraction Industry

The extraction industry for the first time seemed to be united over the issue of tariff on the import of oilseed. Almost 50 edible oil-extracting units of the country are facing a closure following the non-availability of the oilseeds raw material.

Majorities of these units were established on the basis of the availability of the cottonseed as a raw material. However, following the entry of non-

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documented units in this sector, it has become literally impossible for the documented sector to extract oil from the cottonseed oil.

The extraction industry has got a new life, when some of the big importers brought in the Canola at zero per cent duty tariff and started their commercial operations. Many units, which were not operational for the last many seasons, started their commercial operations and they are also supporting the phenomena of the import of the oilseed at the zero.

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Crush margin

In order to calculate the crush margin, one needs to know how much oil and meal is obtained by crushing a unit quantity of soybean. As a rule of thumb, one metric tonne of soybean yields around 180 kg or 0.18 tonnes of soy oil (18% yield) and 820 kg or 0.82 tonnes (82% yield) of soymeal. There is a small wastage amount which is usually not considered in calculations. However, it should be borne in mind that these numbers may vary marginally from year to year, depending on growing conditions. Also, there is considerable variability in the protein and oil content of soybeans among countries, states, regions within states, and among varieties. The actual yield of crude oil and meal per tonne of raw soybeans is determined by the soybean protein and oil content, along with processing conditions and efficiencies.

Under domestic Indian conditions, processing charges roughly work out to Rs 750 per tonne to crush the seed and a further Rs 500 per 180 kg as refining cost of oil. The refining cost per tonne of crude soy oil is roughly Rs 2,500 and approximately 20% is factored for refining the 180 kg of oil derived from crushing 1 tonne of soybean. The crushers have the option to sell the crude soy oil without refining, in which case processing charges will be limited to Rs.750/tonne. However for the purpose of illustration we shall consider refined soy oil as the end product.

Given the above, the crush margin (from crushing 1 tonne of soybean) can be calculated as per the following formula: Crush Margin = [(price of soy oil x 0.18) + (price of soy meal x 0.82)] - [price of soybean + processing cost]

Note that the price of soy oil, meal and bean should all be expressed in Rs per tonne. This is important because the price of oil is usually quoted in Rs/10kg, that of bean in Rs/quintal and that of meal in Rs/tonne.

For example, as on June 26, 2008 the spot prices of bean, oil and meal in Indore, the hub of soybean industry in India were Rs 2,669 per quintal, Rs 692.95 per 10 kg and Rs 20,300 per tonne respectively. Converted into

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constant units of Rs/tonne, the prices are Rs 26,690, Rs 69,295 and Rs 20,300 per tonne respectively.

Thus, the crush margin would be [(69,295 + 20,300) - (26,690 + 1,250)] or Rs 1,173.70 per tonne. As the prices of bean, oil and meal change on a daily basis, so too does the crush margin

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Soil Sampling

S.no. Village Name Farmers Name No. of samples1 Saman Ramavtar,ramnaresh 32 Ratehra Lalvendra,Vinod 33 Gadriya Kundeshwar Singh,Devendra Singh,Jagdish Singh 34 Bundha Padmini saket,Ramgopal patel 35 Jhivla Nageshwar,Ragnesh,Rajiv 36 Kosta Kashim Khan,Lalita tiwari 37 Chorgadi Asha Kole,Mahavir,Rajroop 38 Sirkini Madhav,Prabhulal Rajak,Budha Sen 39 Chowdiyaar Surendra Singh,Lalji Singh,Rammani 3

10 Nodiya Seshmani Singh,Ramdas Sharma,Ashok Sharma 311 Ramnai Vishnudev Singh,Mohanlal Patel 312 Bhaluha Devki Dwivedi,Brijwan kushwaha,Brijendra Shukla 313 Bhaluhi Shivendra Singh,shivlal,Kamta Pandey 314 Paipkhara Vasudha Bhushan,Madhav Prasad,Mankamna 315 Raipur kalchuriyan Abhayraj Singh,Narendra Singh 316 Khuj Bhupendra Singh,Lalbahadur,Ram Singh 317 Khaira Rajesh Tiwari,Ramsaloni Tiwari,Babulal 318 Mehsuva516 Aditya Singh,subhash singh,Deepraj Singh 319 Mehsuva517 Dhakar Chaurasia,Lussur,Raja Chaurasia 320 Mahiya Shivprasad Tripathi,Shivshankar,Praveen kumar 321 Rithi Ramsharan Patel, Ramavtar,Bhimsen 322 Mehraha tola Bansi lal,Sanjay,yagyasen 323 Jogenhai Munendra Shukla,Ramruchi Shukla,Ayodhya 324 Sursakala Bidi Mishra,Daddi Tiwari,Ramayan Tiwari 325 Sursakhud Rakesh Tiwari,Rajesh Tiwari,Ashish Tiwari 326 Madhi Sohan lal Shukla,Pramod Tripathi,Angira Tiwari 327 Awi Shankar Mishra,Vinod Tiwari,Rama Tiwari 328 Umeri Ramji Tiwari,Pramod,Sadhulal Tiwari 329 Devgaon Maheshwar Pidiha,Anand Pidiha,Siddharth Pidiha 330 Kuiyakala Susheel Patel,Usha Patel,Thakurdin Patel 331 Paliya Sundarlal Mishra, S.k.Sharma 332 Omeri Arun Upadhyay,Anand Sharma,Hiralal 333 Vyohara460 Ramsiya Tiwari,Ganesh Sharma,Ramakant 334 Vyohara461 Muni Dubey,Sitaram,Ramnivas 335 Vyohara462 Brijmohan Patel,Sampath,Seshmani Patel 336 Bhita Yagyasen Patel,Dilip Patel,Ramprakash Patel 337 Padariya Bhagirathi Patel,triveni prasad,Ugrasen 338 Goruari169 Deenbandhu Kushwaha,Srishtidar,Panna Lal 339 Goruari170 Anjani Kumar,Indrajeet,Pashnath 3

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40 Sotha621 P.N.Patel,Salikram Patel,Ramgopal patel 341 Sotha622 Srikrishna Pandey 142 Tiwini Munendra Tiwari,Rasraman Tiwari,Ramnaresh Tiwari 343 Ratehri Chandrabhan, Shyam Tiwari,Ramshiromani 344 Budhwa Brahmadin Patel,Rajendra Patel,Tejbhan Patel 3

TOTAL SAMPLES 130

For every crop whether it soybean or rice fertility of soil is important. As I have collected 130 samples of 44 it was found that there are 2 types of soils black soil and brown soil.

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What is Soil?The unconsolidated mineral or organic matter on the surface of the earth that has been subjected to and shows effects of genetic and environmental factors.

Soil is the topmost layer of the earth's surface. It consists of a mixture of minute particles of disintegrated rocks, minerals, organic matter and bacteria. Soil is formed when forces of nature such as temperature, rain, wind, waves, animals and plants act on rocks and break them into tiny pieces over a long period of time. The depth of soil is not the same in all parts of the country. Soil may be only a few centimeters deep in some places while in others it may extend to as much as 30 meters.

Soil consists of four layers. The first or topmost layer of soil is made up of minute soil particles and decayed plant and animal matter. This layer is vital for the cultivation of crops. The second layer is made up of fine particles like clay; the third layer is a combination of weathered basic rock materials and soil while the fourth layer consists of un-weathered hard rocks.

India has various types of soil ranging from the fertile alluvial of the Indo-Gangetic plains to the black and red soils of the Deccan Plateau.

Each type of soil benefits different types of crops through their unique physical, chemical and biological properties. Alluvial soil is a fertile soil rich in potassium. It is highly suitable for agriculture, especially for crops such as paddy, sugarcane and plantain. Red soil has high iron content and is fit for crops like red gram, Bengal gram, green gram, groundnut and castor seed. Black soil is rich in calcium, potassium and magnesium but has poor nitrogen content. Crops like cotton, tobacco, chilly, oil seeds, jowar, ragi and maize grow well in it. Sandy soil is low in nutrient content but is useful for growing trees such as coconut, cashew and casuarinas in areas with high rainfall.

Soil may sometimes get eroded through factors such as wind, running water, overgrazing of animals and human activities such as construction. In addition, soil may also be depleted of its fertility if a particular crop is cultivated repeatedly in the area. This is when soil testing is vital. The quality of soil available in an agricultural area may be tested at soil testing laboratories. Here, the sample of soil is analysed and recommendations are made about what elements are needed to optimize it. Quality soil is one of the most important farming inputs. High yields and good produce can be achieved only when the right type of soil is used for a certain crop. For areas in which

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suitable soil is not available, one may add nutrients in the form of fertilizers to enrich it. Keeping this in mind, the government has set up a large number of soil testing labs all over the country. For more details, one may visit the links mentioned below.

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Soil Fertility

Soil Fertility takes into account the presence of minerals like nitrogen, potassium and phosphorous. This helps in procuring the right fertilizers and choosing a suitable variety of seed in order to get the highest possible crop productivity.

Fertile Soil Fertility has the following characteristics:

It is rich in nutrients necessary for basic plant nourishment. This includes nitrogen, phosphorus and potassium.It consists of adequate minerals such as boron, chlorine, cobalt, copper, iron, manganese, magnesium, molybdenum, sulphur and zinc. These minerals promote plant nutrition.It contains Soil Fertility organic matter that improves the structure of the Soil Fertility. This enables the Soil Fertility to retain more moisture.The Soil Fertility pH is in the range 6.0 to 6.8.It has a good Soil Fertility structure which results in well-drained Soil Fertility.It consists of a variety of micro-organisms that support plant growth.It often contains large amounts of topsoil Fertility.

Types of soil

Black Soil

Also known as regur or black cotton soilDark grey to black in color.High clay contentHighly moist retentiveDevelop cracks in summerRich in iron, calcium, magnesium, carbonate & aluminum.Poor in phosphorus, nitrogen & organic matter.Crops: oilseeds, wheat, rice, millets.

Brown Soil

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Formed under high temperature & rainfall with wet & dry spellSilica is leased due to high rainfallRemnants of iron & aluminum oxide is left behind is now as laterite.Becomes hard when exposed to air

Red Soil

Formed due to weathering old crystalline rocks.More sandy less clayey.Rich in ironPoor in phosphorus.Porous & friable.Crops: Rice, potato, wheat.

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Soya bean Oil Extraction Process

Soybean oil production

The production of commercial soybean oil is complicated. The mechanical production of soybean oil with hydraulic presses is not much used because it’s expensive and gives lower yields. Soybean oil is normally produced by extraction with solvents. The production consists of following steps:

Cleaning of soybeans

The soybeans are first cleaned, dried and dehulled prior to oil extraction. The soybean hulls needs to be removed because they absorb oil and give a lower yield. This de-hulling is done by cracking the soybeans and a mechanical separation of the hulls and cracked soybeans. Magnets are used to separate any iron from the soybeans. The soybeans are also heated to about 75°C to coagulate the soy proteins to make the oil extraction easier.

Extraction of soybean oil

First the soybeans are cut in flakes which are put in a percolation extractors and immerged with a solvent, normally hexane. Counterflow is used as extraction system because it gives the highest yield. After removing the hexane, the extracted flakes only contain about 1% of soybean oil and is used as livestock meal or to produce food products such as soy protein. The hexane is separated from the soybean oil in evaporators. The evaporated hexane is recovered and returned to the extraction process. The hexane free crude soybean oil is then further purified.

Purification of soybean oil

The crude soybean oil still contains many oil-insoluble and oil-soluble impurities that needs to be removed. The oil-insoluble material are removed with filtration and the soluble materials is removed with different processes including degumming (removing of phosphatides), alkali refining (washing with alkaline solution to remove free fatty acids, colorants, insoluble matter and gums) and bleaching (with activated earth or activated carbon to remove colour and other impurities.

Hydrogenation of soybean oil (optional)

This process will increase the stability of the soybean oil and will make it less liquid. However, this process will create more saturated fats and will reduce the favorable unsaturated fats. In addition, transfats are produced which can cause hearth problems. Hydrogenated soybean oil is used in foods that require more solid fat such as margarines.

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CONCLUSION

Agriculture in India has always been the most important economic sector.

The sector accounts for around 24% of the GDP; it plays a fundamental

role in the Indian economy whereby it employs 65% of the working

population.

Agriculture is fundamental to the Indian social structure, political stability

and industrial growth.

KEY FEATURES OF INDIAN AGRICULTURE INDUSTRY

Agriculture sector alone accounts for 18% of the total value of the

country's exports.

Apart from being the largest producer of pulses, tea and milk, 51

major crops of the world are also produced in India.

India is also the second largest producer of wheat, rice, fruits,

vegetables, ground nut and sugarcane.

India is the world's second largest producer of food and

agricultural produce after China and has the potential of being the

largest agricultural Country.

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Understanding the large social impact that agriculture has on the society, the Government has taken several initiatives to promote the growth of the sector.

Over the next two decades, the National Policy on Agriculture aims to attain:

A growth rate in excess of 4% per annum in the agriculture sector;

Growth that is based on efficient use of resources and conserves soil, water and bio-diversity;

Growth with equity i.e. growth which is widespread across regions and farmers;

Growth that is demand driven and caters to domestic markets and maximizes benefits from exports of agricultural products.

Growth that is sustainable technologically, environmentally and economically.

Madhya Pradesh is the largest producer of pulses and oilseeds in the country. The State also shares a major share of the National agriculture production. About 25% of pulses and 40% of grams are grown in the state.

Out of the total gross cropped area 59% is sown in the Kharif season(soybean) and 41% in the Rabi season.

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INDIA SOYABEAN PRODUCTION

Maharashtra, (28%)

Rajasthan, (9%)

Others (3%)

The most common varieties in India on the other hand, are grown during the relatively short monsoon season, and have maturity durations of not more than 100 days. However, there are several other factors that give rise to the comparatively low yield.

Water stress is likely to be a significant factor. Adequate moisture is vital at critical growth periods of soybean, but nearly all soybean production in India is under rain-fed conditions, and thus water availability is dependent on the frequency and amount of the monsoon rains.Inefficient use or lack of access to inputs such as seed, fertilizers and pesticides limits productivity. A lack of weed control measures means the soybean crop is often highly infested with weeds.The soybean crop is often affected by diseases, for example, rust, and yellow mosaic virus. Farmers very rarely use any plant protection measures, and there is little seed replacement or adoption of improved varieties.Soybean sowing is often done hurriedly with the onset of monsoon without the desired level of cultivation. Inadequate tillage exacerbates the weed problem. Water-logging in low-lying fields leads to stunted growth and nitrogen deficiency.

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INDIA SOYABEAN PRODUCTION

Maharashtra, (28%)

Rajasthan, (9%)

Others (3%)

Findings And Suggestions

The State has sufficient notified agricultural market yards and sub market MP is the most biodiverse state in the country with 11 agro climatic zones, 5 crop zones and 4 zones varying in soil types.

The soil and agro climatic conditions are suitable for rapid agricultural development.

The state has a strong base in horticulture.

The state is set in centre of the nation’s commercial activities. It is located at an easy distance from all the major agricultural markets in India.

About 75% of the population of the state is largely dependent upon agriculture for their livelihood. This ensures easy availability of manpower at a relatively lower retention cost.

The State has a large network of primary agricultural co-operative societies playing a crucial role in supplying agricultural inputs including seed, fertilizer and pesticides in the far flung areas.

Farm mechanization is being promoted in the state by the Directorate of Agricultural Engineering.

Despite the potential the state has, the rate of prime land in the State is amongst the lowest in the country, thereby offering an advantage to the investor by reducing their capital investment cost.

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Suggestions

Contract Farming: Future Trend in Agriculture

As we see that today many big firms are doing contract farming for the benefits of both the parties.

Contract farming is an emerging concept in MP that provides vast opportunities for potential investors wherein the production and supply of agricultural/ horticultural produce are pre agreed under forward contracts between producers/ suppliers and buyers. The contract details the type of agri commodity required at a time and a price, and in the required quantity.

Contract farming provides a proper linkage between the farm and the market.

The concept of contract farming is being recognized in MP as the most promising opportunity for an investor.

State has the potential to develop and increase the production of horticulture crops for each of the 11 Agro-climatic sub-zones.

Many opportunities are also available at each part of the value chain in agro – processing industries.

BENEFITS OF CONTRACT FARMING

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Assured market for their produce

Adequate & quality agri input supplies

Free technical know-how.

improved access to local markets.

Assured markets and prices (lower risks) especially for non traditional crops.

Assured and often higher returns.

enhanced farmer access to production inputs, mechanization and transport services

Additional key benefits for contract partners

Assured quality and timeliness in delivery of farmers’ productsImproved local infrastructure, such as roads and irrigation facilities in sugar out grower areas, tea roads, dairy coolers/collection centers, etc

Lower transport costs, as coordinated and larger loads are planned, an especially important feature in the case of more dispersed producers

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If Jaypee soya processing unit adopt the measures mentioned in the report the firm can definitely change the picture of soybean farming in Rewa District as well as it will also increase the business & provide employment opportunities.

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BIBLIOGRAPHY

http://india.gov.in/citizen/agriculture/soil.php

http://www.developmentinaction.org/summer-2009/sustainability-of-soybean-production-in-madhya-pradesh.html

http://www.fao.org/ag/ags/contract-farming/faq/en/

http://www.google.com

Dr. R.P Singh- Soya Bean Plant In charge

Mr. Phiji J Philip – Reporting In Charge.

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Appendix

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