As rain boosts crop growth in key growing areas, India's soy production is likely to reach a record of 13.34 million tonnes in 2013-14, a rise of 18% from the year before.

 

The increase will help the world's top importer of edible oils cap overseas purchases in the marketing year starting November 2013, as well as increasing its soymeal exports to Asian countries.

 

"The soy area has risen. The weather is good and there is a forecast for normal weather in August and September," B.V. Mehta, executive director of the Solvent Extractors' Association of India (SEA), said. "All this should help us in increasing production by 1.5 to two million tonnes."

 

In 2012-13, the country produced 11.34 million tonnes of soy, the main summer-sown oilseed crop, according to the Central Organisation for Oil Industry & Trade.

 

The central state of Madhya Pradesh and western Maharashtra state are the country's two top soy producers, accounting for over 85% of total output.

 

Both states have received significantly higher rainfall than normal since the beginning of the four-month long monsoon season on June 1. The favourable weather has helped farmers increase the amount of oilseed planted.

 

As of August 15, there were 12.13 million hectares reserved for soy cultivation in India compared to 10.64 million hectares a year ago, farm ministry data showed last week.

 

In some pockets, heavy rainfall damaged the soy crop. However, soy output is set to rise due to higher area under cultivation, Mehta said.

 

India's imports of edible oil in the current marketing year ending on October 31 are likely to rise to 11 million tonnes, from nearly 10 million a year ago, said Dinesh Shahra, the managing director of Ruchi SoyaBSE.

 

India mainly buys palm oil from Indonesia and Malaysia and a small quantity of soyoil from Argentina and Brazil.

 

Meanwhile, the country's growing population and rising middle-class have driven up its edible oil needs, which domestic supplies are unable to meet.

 

"Groundnut crop is also in good shape. After nearly three years groundnut has been cultivated on normal area," said Mehta of SEA.

 

Groundnut is the second most planted summer-sown oilseed in the country. Area under groundnut stood at four million hectares as of August 15, against 3.43 million hectares a year ago.