The Hindu Business Line : Rabi oilseeds output seen 11.3 lakh tonnes lower

Fall in estimates
The COOIT projection shows over 2.5 lakh hectares fall in rapeseed coverage, while in the case of Rajasthan, a similar trend has been witnessed.
A fall to be witnessed in safflower, sesame and linseed output also, according to COOIT.

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Chennai Jan. 28 Rabi oilseeds production is projected to decline by 11.3 lakh tonnes this year, mainly on fall in coverage of the crop by over 10 lakh hectares. In the first trade estimate of rabi oilseeds crop made by the Central Organisation for Oil Industry & Trade (COOIT) in Mumbai on Saturday, the production has been pegged at 91.4 lakh tonnes (lt) against 102.7 lt last year.

Estimates

With kharif oilseed production also being lower, the total output this season is now projected nearly 20 lt lower at 219.8 lt (239.7 lt). For the kharif season, the production has been estimated at 128.4 lt against 137 lt last year.The estimates are in tune with trade expectations of lower oilseed crop that has led to sharp rise in edible oilseeds and oil prices and forcing the Centre to resort to various measures to keep inflation on leash.

Last week, the Centre cut the Customs duty on edible oils by 10 to 12.5 percentage points for crude and refined oils imports. Prices of edible oils have surged between 22.5 per cent for soyabean to over 43 per cent for sunflower since the first week of January 2006.

The increase has been modest only for sesame (white), which has witnessed a rise of a little over 11 per cent during the period, according to the Solvent Extractors Association. In the case of edible oils, sunflower and groundnut oil have surged by over 40 per cent, while rapeseed oil by 23 per cent. Also, global edible prices have been increasing as they are being increasingly used for bio-diesel production in the face of crude oil prices rising. Imported RBD palmolein and refined soyabean oil, on the other hand, have surged by over 40 per cent. According to the Union Agriculture Ministry, area under rabi oilseeds declined to 94.82 lakh hectares compared with last year's 105.24 lakh hectares. The lower coverage this year is due to diversion of area of rapeseed and mustard to Bengal gram in Madhya Pradesh and to wheat in Haryana, Rajasthan and Uttar Pradesh. The COOIT projection shows over 2.5 lakh hectares fall in rapeseed coverage, while in the case of Rajasthan, a similar trend has been witnessed. A fall has also been projected in the production of safflower, sesame and linseed by COOIT.If the production turns out to be true to projections, then it would the lowest in the last three years.

In view of the lower production, imports are expected to surge by over 60 lakh tonnes for both edible and non-edible purpose from 52.75 lakh tonnes last season (November 2005-October 2006).