August 27, 2010

India's 2010-11 soy output may rise on good rains

Soy production in India is likely to increase in the next crop year, driven by better yields due to better rains in major growing regions, industry executives said Thursday (Aug 26).

The country is estimated to have produced about 8.5 million tonnes in the crop year ending September 30, according to data from the Central Organisation for Oil Industry and Trade.

The overall production in 2010-11 will be better than the current year, but it is too early to give any figure, said Govindbhai Patel, managing partner of Dipak Enterprises and an expert on vegetable oil industry.

The soy production in 2009-10 fell about 5% as India suffered its worst drought in almost four decades, with monsoon rains 22% below average. But the monsoon rains are near normal this year so far, boosting the prospects of crop growth.

The crop condition is quite good in major soy growing regions as the rains are coming in regular intervals, said S.K. Srivastava, director of National Research Centre for Soybean.

The sowing of Indian soy - the main oilseed grown in the summer season - starts in June and continues through July.

Total area under summer-sown oilseeds has increased 5.4% to 16.14 million hectares until August 20, according to the latest government data.

Despite expectation of higher production and large stocks, India's edible imports in 2010-11 may remain mostly steady compared with the current year, industry executives said.

The country is likely to import 8.2-8.4 million tonnes in the marketing year ending October 31, said Pradip Desai, managing director of Mumbai-based importer Palmtrade Services Pvt Ltd.

India is the world's second-largest edible oil importer. It imports palm oil mostly from Indonesia and Malaysia, and soyoil from Argentina and Brazil.