June 20, 2008

Indonesia projects 63-percent hike in soy output

Indonesia's soy production is forecast to propel by 63 percent next year against previous estimates due to increased planting.

Anton Apriyantono, Indonesia's agriculture minister, said the soy harvest may rise to 1.5 million tonnes against earlier estimates of 1.2 million tonnes from 920,000 tonnes in 2008.

The country consumes about 2 million tonnes of soy annually.

Meanwhile, corn production is seen to climb to 18 million tonnes in 2009, unchanged from the previous estimate, Apriyantono said.

The production will be boosted by distribution of free seeds, subsidized fertilisers and area expansion, Apriyantono said at a parliamentary hearing.

The government pledged to allocate IDR10.74 trillion (US$1.16 billion) as subsidies next year to lower fertiliser prices and IDR904 billion in seed subsidies.

Sutarto Alimoeso, director-general for food crops at the agriculture ministry, pointed out that increased output may reduce the country's dependence on imported soy by around 500,000 tonnes.

Indonesia's soy output may be enough to meet consumption in 2011, Alimoeso said.