March 19, 2009

India's rapeseed supplies during the ongoing peak harvesting season rose more than 60 percent on year on higher production and rising local demand, industry official said Wednesday (March 18).

 

"The daily arrivals have increased to about 650,000 bags this week due to a good crop," said Govindbhai Patel, managing partner of Dipak Enterprises and a leading expert on vegetable oils.

 

Supplies during the same period last year were about 400,000 bags.

 

India's rapeseed crop is estimated at 6.4 million tonnes in 2008-09 compared with 4.6 million tonnes in the previous year, according to the Solvent Extractors' Association of India.

 

Over 80 percent of the crop has been harvested in the country's biggest growing regions and it is unlikely to fall below the estimated figure, Patel said.

 

In India, rapeseed is mainly grown as a winter crop, which is sown during October and harvested in February and March.

 

Supplies are likely to touch 750,000 bags by the end of March as farmers are getting better rates than the government's support price, Patel said. The so-called minimum support price is what state-run agencies pay farmers to buy their crop. The measure helps farmers get a steady income, insulating them from market price-fluctuations.

 

Prices in the local markets are ruling at INR22,750/tonne compared with the state-fixed price of INR18,300/tonne.

 

"We are witnessing good demand from both local as well from overseas markets," said Vijay Data of Vijay Solvex Ltd.

 

India has contracted exports of close to 500,000 tonnes of rapeseed meal, mostly to Southeast Asian countries for shipment over the next few months, Jayesh Patel, managing director of Vimal Oil and Foods, said last week.

 

Rapeseed oil is used for cooking and rapeseed meal, which is obtained as a by-product after crushing, is used as poultry feed.

 

Rapeseed meal exports dwindled last year due to a sharp fall in production and depletion of earlier inventories.