July 3, 2012

India's 2012-13 soy production in danger on delayed monsoon

Due to the delay in monsoon rains, India has raised concern over the soy production despite increased acreage for 2012-13.

Due to high price realisation for the commodity compared to other agricultural produces in the country, prompted the farmers to move towards oilseed crop.

In India, Madhya Pradesh and Maharashtra are the top two soy producers accounting for more than 85% of the total production of the country. And both states have so far received below average rains.

India's soy acreage is likely to rise by 7% in 2012-13. The price of the commodity during the month of June rose around 13% to INR3,968.50 (US$72.4) per quintal on June 30.

Globally the availability of soy is under concern over the bad weather condition especially in the US, major exporter of the commodity.

Soy for July delivery in Chicago Board of Trade (CBOT) surged US$0.15 6/8 to US$0.1528 4/8 per bushel and in India's National Commodity and Derivative Exchange (NCDEX) the commodity traded up 0.08% to INR3,971.5 (US$72) per quintal on July 2 at 12:15 IST.