October 1, 2013

India's soy output this year may reach 12.98 million tonnes, a 2.4% rise over the same period last year.

Indian farmers planted 14.3% more land with soy this year at 12.22 million hectares, which the government and some experts feel has translated into higher output although others say heavy late rains have lowered the yield of the crop.

The Soy Processors Association of India's (SOPA) forecast estimated yields would be 1,079 kilogrammes per hectare in 2013-14, down 8.9% from 1,185 kilogrammes per hectare in 2012-13.

"Excess monsoon rains in the main producing state of Madhya Pradesh has reduced the crop yield," said Rajesh Agrawal, coordinator of SOPA.

India uses soy to make soyoil, which helps the country cut its hefty edible oil imports, while the by-product soymeal is used in animal feed and exported, mainly to Southeast Asia.

India is Asia's top oilmeal exporter and the world's biggest vegetable oil importer. The government is encouraging soy planting by raising minimum prices offered to farmers in order to reduce its dependency on imported oils.

An early, heavy start to the June-September monsoon brought a larger area under soy and also gave an early expectation of at least 18% higher output for the oilseed crop in the year that started July 1, 2013. But as the rainy season advanced, expectations decreased gradually due to heavy downpours in central India, the main growing belt for the crop.

The government in its first estimate earlier this week for the current crop year had said soy output could be 15.68 million tonnes. It is normally conservative in its early forecasts. Farmers grow soy once in a year during the rainy months of July and August, and harvest the main summer oilseed crop from October.