March 15, 2010

India 2009-10 oilseed output seen down 5% 

India's total oilseed output in 2009-10 is estimated to decline by about 5% due to a drop in summer-sown crop following the worst drought in nearly four decades, a trade body said Friday (March 12).

The likely fall in oilseed output may result in higher imports of edible oils by India. The South Asian nation is the world's second-largest edible oil consumer after China and meets more than half its annual requirement of about 15 million tonnes through imports, mainly from Malaysia, Indonesia, Brazil and Argentina.

Total oilseed output in the year through September 2010 is expected to be 23.11 million tonnes, down from 24.26 million tonnes in the previous year, the Central Organization of Oil Industry and Trade said.

However, the winter oilseed output is expected to rise 2.5% to 9.46 million tonnes on likely higher rapeseed crop, the trade body said.

"Rapeseed output is likely to be better due to good weather conditions in the last two months despite a fall in acreage," said B.V. Mehta, executive director of Solvent Extractors' Association of India.

Rapeseed output is likely to rise to 6.32 million tonnes from 6.20 million tonnes. Area under rapeseed has fallen to 6.03 million hectares from 6.62 million hectares, the trade body said.