May 23, 2009

 

 

India's soy planting, which is underway, is expected to rise 10 percent to 10.6 million hectares this year on higher local prices and hopes of early monsoon rains, industry officials said Friday (May 22).

 

During 2008, the area under cultivation was at 9.6 million hectares, according to the Soybean Processors Association of India. Soy crop is sown in May-June and the harvest starts in October.

 

"Farmers are getting better prices for the crop, which is encouraging them to plant more soy," said Sandeep Bajoria, chief executive of Mumbai-based edible oil trading company Sunvin Group.

 

Soy prices in Indore, a major trading hub in the largest growing state, Madhya Pradesh have increased to Rs2,600/100 kg this year from Rs2,300 the same period a year earlier.

 

The expectation of early arrival of monsoon is also likely to help increase the area under cultivation, said Rajesh Agrawal, a spokesman for the Soybean Processors Association of India.

 

The June-September monsoon is important for summer-sown crops, such as oilseeds, as 60 percent of the fields are rain-fed. The annual monsoon rains are due to arrive by May 24-26.

 

A rise in acreage is also likely to boost production, officials said.

 

"Last year, yield was affected due to erratic weather during the end of sowing season, but if the weather remains conducive this year we can expect more crop," said Agrawal.

 

Yield in 2008 was about 1.1 ton per hectare.

 

"We expect total production could touch 12 million tonnes," said Sunvin's Bajoria.

 

According to latest federal government estimates, soy output in the current crop year ending September is likely to be 10.2 million tonnes.

 

US$1 = Rs$46.9750 (May 23)