September 8, 2010

 

Indian 2010-11 soy output seen to surpass last year's

 

 

India's 2010-11 soy output is likely to top last year's and meal exports from the new crop may rise significantly as lower bean prices are seen giving an edge to exporters at home, a senior industry official said.

 

Export demand for Indian meal has improved in past two months and the trend will continue in coming months, according to Sanjay Agarwal, managing director of K.S. Oils, India's top rapeseed crusher.

 

India sells 3-4 million tonnes of soymeal annually, but it lost market share in the year-ending September 2010 due to lower production due to a drought in the country and strong supplies from Argentina and Brazil.

 

Agarwal noted that demand from Asian countries is very good for Indian soymeal, but prices are also competitive. Thailand, Vietnam and Japan are key buyers of Indian soymeal.

 

India's soymeal exports during October-August were 2 million tonnes. With just a month left to end the current year, the exports are likely to be far below 3.2 million tonnes recorded in 2008-09.

 

Agarwal expects soy output to rise in 2010-11 on better monsoon rains but if rains continue, there may be some repurcussions on the crop.

 

The Central Organisation for Oil Industry and Trade has estimated the country's soy output in 2009-10 at 8.5 million tonnes, down 4.4% due to deficient rains that pulled down yields.

 

Soy is sown during the monsoon months of June and July and the crop starts arriving in the market by October.

 

Meanwhile, the acreage under soy has fallen slightly, but output would remain steady due to better yields, Agarwal said. Area under soy in the country stood at 9.2 million hectares as on August 26, slightly down from 9.5 million hectares last year, farm ministry data showed.