India rapeseed arrivals down 30% on bad weather

 

 

Rapeseed arrivals in the Indian market had fallen about 30% year-on-year as of March 25 this crop year as bad weather delayed supplies and put paid to expectations of a higher crop, analysts and traders said.

 

India's rapeseed crop year runs from October through September, and as of March 25 arrivals had dropped to about 450,000 bags a day from almost 650,000 bags a year earlier, they said. One bag is equal to 85 kilogrammes.

 

Lower supplies have already driven rapeseed prices up more than 5% to about Rs515 (US$11.44) per 20 kilogrammes in the past month, and if the trend continues demand could shift to other edible oils such as soyoil.

 

Veeresh Hiremath, senior analyst with Karvy Comtrade Ltd., said cold weather in some major producing areas has caused arrivals to be delayed by 15-20 days this year.

 

More than half of India's rapeseed is produced in Rajasthan and Haryana, which have both been hit by the cold this year.

 

According to Vijay Data, managing director of edible oil producer Vijay Solvex Ltd., market supplies have also been affected by a shift in India's peak marriage season, the period when farmers traditionally sell their produce in order to meet wedding expenses.

 

This year, the peak marriage season has moved to May from April last year.

 

Rapeseed, the main oilseed sown in the winter season, is harvested in late February.

 

Although the poor weather has affected initial production, output is likely to rise to 6.32 million tonnes this crop year from 6.20 million tonnes in the 2008-09 season, according to estimates by the Central Organization of Oil Industry and Trade.