The Hindu Business Line : Soyabean, groundnut set for record crop

Nagpur, Oct 28 There is good news on the domestic oilseeds production front. The country is in the process of harvesting a record soyabean crop, while there is a rebound in the groundnut crop.

Aided by an improved southwest monsoon performance that helped soyabean and groundnut crops, the output of major cultivated oilseeds during the ongoing kharif 2007 season is seen 25 per cent higher from last year. As a result, indigenous vegetable oil production is expected to show an increase during oil year 2007-08.

After daylong deliberations in Nagpur on Sunday, trade estimate for kharif 2007 oilseeds was arrived at 168.3 lakh tonnes, up from last kharif’s revised figure of 134.5 lt. Soyabean has scaled a new high 94.6 lt, considerably up from last year’s 79.6 lt.

The all-India trade meet was organised by the Central Organisation for Oil Industry and Trade jointly with the Soyabean Association of India. About 300 delegates representing diverse sections of industry and trade participated.

Vidarbha in spotlight

As a result of higher output, raw material availability for solvent extraction plants will improve; so will capacity utilisation, industry representatives said. Maharashtra, in particular Vidarbha region, is emerging as the new centre of attention for soyabean cultivation. Output in the State this season has reached a new high of 32 lt (24 lt), while the traditional Madhya Pradesh accounts for 50 lt (47 lt). Rajasthan is a distant third with 7.5 lt.

Even as soyabean has consistently stayed ahead of groundnut production for some years now, in the current season groundnut in-shell output has rebounded to 52.7 lt. (35 lt), with Gujarat accounting for 21 lt and the three southern States together accounting for 21.5 lt.

Enough for crushing

Total edible oil import during oil year 2006-07 (November-October) is estimated at 50 lt, including 2.5 lt of vanaspati (46.9 lt).

Agriculture Ministry’s estimate of soyabean output is 90.4 lt. Trade estimate is higher.

Some industry representatives remarked that soyabean output may even cross 100 lt. It is not unusual for some industry players to present somewhat exaggerated output numbers.

In any case, availability of oilseeds for the crushing industry is expected to be comfortable.

Soyabean prices are currently ruling at about Rs 15,000 a tonne, up from Rs 12,000 a tonne last season, benefiting growers.

A big crop combined with high domestic prices for bean and high international rates for both meal and oil is likely to result in good crushing parities, industry representatives pointed out.

Already about 15 lt of soyabean extractions have been committed for export. India’s exports of soyameal may touch 40 lt in 2007-08.

Focus on Rabi

With kharif numbers already digested, the focus seems to be slowly shifting towards rabi crop, planting for which will soon gather momentum.

How much acreage rapeseed/mustard will attract has become a topic of debate.

The effect of a sharp rise in minimum support price for wheat and a very modest hike for rapeseed/mustard on acreage remains to be seen.