July 12, 2011

Patchy rainfall affects India's soy acreage

Patchy and uneven distribution of rainfall in India's soy growing regions has left industry experts divided over acreage and production this season.

Satyanarayan Agarwal, president of the Central Organisation for Oil Industry & Trade (COOIT), said the overall soy acreage may fall 5-7% this year due to a shortfall in rain across major growing states, including Maharashtra.

"The loss in acreage, especially in Maharashtra, is unlikely to be recovered even if the intensity increases," Agarwal said.

Soy sowing starts with the onset of monsoon and continues until the second week of July. In areas where crops are damaged, re-sowing begins and concludes in the third week of July.

Maharashtra, which contributes nearly one-third of soy output in India, has reported only 977,900 hectares sown as of July 9, against a target of 2.53 million hectares. Although the state has received 152.18 millimetres of rainfall, scattered rain in soy-rich western Maharashtra has resulted in lower overall acreage.

However, Soy Processors' Association spokesperson Rajesh Agrawal said the loss in acreage in some parts of the country will be bridged by the end of the season.

"Last year, total soy area was reported at 9.3 million hectares," he said. "This year, we will surely achieve this figure, if not higher."

The monsoon season began with 11% more rainfall than average in June. However, July saw 25% less rainfall than average for the week ended July 6. Rainfall for the season as a whole was 1% above average between June 1 and July 6, a Citi report said.

The ministry of agriculture reported an increase of 8% in total sowing area at 3.68 million hectares as of July 8 this year, against 3.42 million hectares in the same period last year.