September 13, 2011

India's soy output to exceed 10 million tonnes

India's soy production is likely to increase above 10 million tonnes in the next marketing year due to positive rainfall and higher acreage, an industry executive said on Monday (Sep 12).

According to Reuters, soy output in the current marketing year ending September 30 is estimated between nine million and 9.5 million tonnes, said Dinesh Shahra, managing director of edible oil refiner Ruchi Soya Industries Ltd.

Soy accounts for more than 60% of the country's total summer-sown oilseed output. Higher soy output is likely to reduce edible oil imports by India, the world's largest buyer.

Soy plantings have progressed well, with the central state of Madhya Pradesh and the western state of Maharshtra receiving sufficient monsoon rains.

India has received 3% more rainfall than the widely watched 50-year average in the current monsoon season that began June 1.

Separately, Shahra said soymeal exports are likely to rise only marginally in 2011-12 as increasing domestic consumption will prevent a sharp growth in exports, although global demand is strong due to lower Indian prices.

Indian soymeal prices are currently US$30-40 per tonne below global prices, Shahra said.

Overseas demand for soymeal, which is mainly used as a cattle feed, is also high as there is a shortage of corn.

India's soymeal exports in 2010-11 are expected at about four million tonnes, up from about 2.8 million tonnes last year, according to industry executives.

The carryover stocks are likely to be lower at about 200,000 tonnes in 2011-12 due to higher soymeal exports, Shahra said, without specifying last year's carryover stocks.