September 25, 2023

 

India's soybean production likely to decline due to patchy monsoon

 

India's soybean production faces a potential decline due to patchy monsoon rains in August, impacting crop growth in key cultivation areas, according to industry experts and farmers, Moneycontrol reported.

 

Soybeans are a vital commodity for India, as they are used to produce soyoil, a crucial component in reducing the country's substantial edible oil imports. Additionally, soybean by-products, like soymeal, are widely used in animal feed and exported primarily to Southeast Asia.

 

Soybean cultivation in India occurs once a year during the monsoon season, with planting taking place in June and July. The main summer oilseed crop is typically harvested in October.

 

The latest data from the Indian farm ministry indicates that farmers planted soybeans on 12.5 million hectares this year, slightly more than the 12.4 million hectares during the previous year.

 

B V Mehta, the executive director of the Mumbai-based industry association, the Solvent Extractors' Association of India (SEA), expressed concerns about the impact of insufficient rainfall on soybean yields. Mehta said that the rainfall deficit is likely to result in lower yields, and that's why he believes that soybean production could be lower than last year.

 

Although there has been some revival in rainfall, parts of western India continue to experience dry conditions. In August, the monsoon rains, vital for soybean crops, were 36% below average. However, they have rebounded this month, currently exceeding the average by 7%.

 

Mehta said that despite a late start of the monsoon in June, the crop was quite good until August when a prolonged dry spell hit the crop.

 

Madhya Pradesh, Maharashtra, and Rajasthan are among India's top soybean-producing states.

 

Rameshar Singh, an oilseed grower from the central state of Madhya Pradesh, highlighted the challenges faced by the crop due to the dry spell in August. He said that the crop suffered a lot of moisture stress when it didn't rain for two weeks in August. As rains revived in September, some of the losses have been recouped.

 

Despite the anticipated decrease in output, soybean supplies are expected to exceed demand as the new marketing year begins, with stockpiles estimated to range between 1.5 million tonnes and 2 million tonnes, according to Mehta.

 

-      Moneycontrol