November 22, 2007

India 2007/08 soy harvest seen at 9.2 million tonnes

Post estimates from the US Department of Agriculture (USDA) show that India's soy crop for 2007/08 crop year is projected to reach 9.2 million tonnes on favourable weather and increased soy acreage. However, despite large projections, domestic prices have been restricted due to high costs in the international market, according to the USDA.

Madhya Pradesh, one of the India's biggest soy producing states, has increased 55 percent from the previous year in its total soy area. Maharashtra, with 30 percent of total soy area, recorded the highest productivity of 1.2 million tonnes per hectare due to good germination, increased use of herbicides, better crop management practices and optimum rainfall.  Soy farmers benefited from record high prices prevalent during the harvesting season (October to mid November), ranging from Rs. 16,000 per tonne (US$405/tonne) to Rs. 16,600 per tonne (US$420/tonne), as compared to around Rs. 12,000 per tonne (US$304/tonne) last year.  High international prices due to lower soy crop estimates for the US and China, coupled with global increased use of edible oils for biofuel production favoured high domestic prices during the harvesting season as well.

Higher crop production estimates will naturally lead to increased product available for crushing.  Soymeal production in MY 2007/08 is seen up to 6.3 million tonnes compared to 5.2 million tonnes for last year. 

Consequently, the MY 2007/08 soymeal export forecast is revised higher to 4.4 million tonnes.  The USDA's previous estimate for MY 2006/07 soymeal exports matched with the actual export volume of 3.46 million tonnes.

For more of the USDA report, please click here