India's soy acreage to expand by 20 percent on lure of high prices

India's acreage for soy may gain as much as 20 percent in the second half of 2008 from 8.85 million hectares last year as high prices boost farmers' enthusiasm.

 

Soy production may rise to 9.47 million tonnes in the year ending June from 7.15 million tonnes last year, the Indian Soybean Processors Association said.

 

Dinesh Shahra, managing director of India's biggest soy processor Ruchi Soya Industries Ltd, said in an interview with Bloomberg, that there is already a rush among farmers to secure enough soy seeds ahead of sowing.

 

Due to record soy prices, Indian farmers are devoting every inch of land available for soy planting, Shahra said.

 

Furthermore, good weather has stimulated farmers in Madhya Pradesh, which accounts for more than half of the country's soy output, to plant soy 15 to 20 days earlier than normal.

 

Observers said early rains will further propel sowing and production.

 

In the western Indian state of Maharashtra, farmers are also expected to switch to soy instead of cotton and sugarcane.

 

A robust soy production in India will boost the country's soymeal exports to neighboring Southeast Asian countries, which have been scouring for cheaper alternatives from pricier soy from Latin America and the US

 

India's shipments of soymeal may surpass 4.5 million tonnes for the year through September 2008, according to the Soybean Processors Association.

 

From October 2007 to May 2008, India exported a total of 4.1 million tonnes, 31 percent more than a year earlier.

 

India usually exports more than 70 percent of its soy output.

 

The country ships soymeal to China, Vietnam, Japan, Indonesia and South Korea.