May 27, 2009

India's soy acreage may rise for a seventh year in a row to touch 10 million hectares this sowing season on better returns than most crops, experts said.

Unlike many other competing crops, farmers may be prompted to sow oilseeds as it has a ready market, and they do not need to depend on the government's buying programme.

The 4 percent jump in acreage in 2009-10 from last year's 9.62 million hectares, is seen across top growing states of Madhya Pradesh, Maharashtra, Andhra Pradesh and Karnataka.

Soybean Processors' Association (SOPA) spokesperson Rajesh Agarwal said there would be a rise in soy acreage, and is expecting much higher growth in productivity as more farmers are likely to use quality seeds.

But, rise in acreage and productivity will be dependent on arrival of monsoon rains and its distribution. Soy is largely a rain-fed crop, especially in Madhya Pradesh and Maharashtra, the top two producers.

The Central Organisation for Oil Industry and Trade estimates soy output may dip 6 percent in the year to September 2009, despite a rise in acreage as patchy rainfall in growing regions affected yield.

A delay in monsoon rains or uneven distribution in producing regions may prompt farmers to look for alternative crops.

According to industry players, average returns in soy this year have been more than Rs2,200 per 100 kilogrammes, against the government set support price of Rs1,390.

India-based representative of US Grains Council Amit Sachdev said that farmers may reduce their corn crop size as prices of competing crops like soy have been higher and may remain strong this year also.

In Maharashtra, the second largest producer, land under the oilseed may jump 13 percent, according to Devidas Zope, director of extension and training at state agriculture department.

US$1 = Rs47.568 (May 27)