February 23, 2006

India expects soy output to hit new highs, revises wheat output

India on Wednesday revised earlier forecasts of a bumper crop for wheat downwards but maintained an optimistic forecast of other grains in the year to June 2006, saying a record for soybean is expected

The country's food grain output for the year is estimated at 209.32 million tonnes, up 4.71 million from the previous year, Farm Secretary Radha Singh told reporters.

Wheat output was estimated at 73.1 million tonnes, up from 72 million a year ago but lower than an earlier projection of 75 million tonnes.

Traders said estimates this time were more realistic and had taken weather conditions into account.

Wheat has failed in a large tract of land in Madhya Pradesh, which suffered a drought.

India has tendered for imports of 500,000 tonnes of wheat after government stocks reached unusually low levels and domestic prices skyrocketed.

Singh said winter grain output was estimated at 108.15 million tonnes against 103.32 million a year ago while summer grain output was estimated at 101.17 million tonnes compared with 101.29 million last year.

Oilseed production would hit a record 26.37 million tonnes, and soybean production of 7.92 million tonnes, up from 7.51 million, would also represent a new peak. However, traders said the forecast for soybean was too optimistic as rains in Madhya Pradesh, the soybean producing region, were not forthcoming.

The rapeseed crop was forecast at 7.69 million tonnes, down from 8.36 million a year ago because of poor weather in the largest growing state, Rajasthan.