May 26, 2008
 

Higher prices spur India's 2008-09 oilseed production

   

Higher prices have prompted a rise in soy and peanut production and would likely lead to a 6-percent rise in oilseed production for 2008-09 to 36 million tonnes, according to a USDA attache report.

 

The increase stems from the Indian Meteorological Department's recent early forecast of a normal summer monsoon this year and prevailing high domestic prices for all oilseeds, which should prompt farmers to bring larger area under oilseed cultivation, particularly soy and peanuts. However, the rapeseed crop planted in the fall will face increased competition from wheat and winter season pulses, such as chick peas, and lentils.

 

MY 2007/08 total oilseed production is revised marginally upward to 34 million tonnes from the earlier estimate of 33 million tonnes, mainly due to higher cottonseed production, which is now estimated at 10.4 million tonnes, up 14 percent over MY 2006/07 production.

 

Edible oil imports are forecast at around 5 million tonnes, marginally below MY 2007/08 estimated imports of 5.1 million tonnes due to likely higher domestic production.

 

India is estimated to have imported 1 million tonnes of soyoil for MY2007-08.

 

Soymeal exports are likely to receive a strong boost from high international prices.

 

MY2008-09 soymeal exports are likely to reach a record 5.5 million tonnes if prices continue to be high. This is out of a total oilmeal production of 16.3 million tonnes (compared to 15.4 million tonnes estimated for MY 2007/08).

 

Domestic consumption of oilseeds for MY 2008/09 is forecast to increase to 35.5 million tonnes, up by 2 million tonnes from MY 2007/08.

 

During MY 2007/08, prices of all major oilseeds were above the government's support price providing an incentive for farmers to bring more area under oilseed cultivation in MY 2008/09. The GOI provides various incentives and financial support to oilseed growers under the GOI's Integrated Oilseeds, Oil Palm, Pulses and Maize Development programme (ISOPOM), in the form of input subsidies and extension services.

 

MY 2008/09 oil meal production is forecast at 16.3 million tonnes, six percent higher than in MY 2007/08 on anticipated higher oilseed production and larger crushing in response to rising feed demand in domestic and international markets. Record soy production is due to excellent growing conditions and in response to high international prices for soy meal, which has led to an upward revision in the MY 2007/08 total oil meal production estimate to 15.4 million tonnes, up 9 percent over the previous year.

        

	2007-08	2008-09
Oilseed production	34 million tonnes	36 million tonnes
Oilseed domestic consumption	33.5 million tonnes	35.5 million tonnes
Oilmeal production	15.4 million tonnes	16.3 million tonnes
Edible oil imports	5.1 million tonnes	5 million tonnes
Soyoil imports	Unavailable	1 million tonnes
Edible oil production	6.9 million tonnes	7.3 million tonnes
Soymeal exports	Unavailable	5.5 million tonnes