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Soybean output likely to witness 11-year low

04 Jul 2016 Evaluate

India’s soybean output is estimated to be the lowest in 11 years in crop year 2015-16 (July-June), after two years of drought, resulting in crop damage and a fall in yield. Data compiled by the Soybean Processors’ Association of India (SOPA) showed that output at 7.5 million tons (mt) this time, against 10.4 mt the previous year, a decline of 27%.

There has been a delay in sowing, as the monsoon was delayed in some parts of Rajasthan, Madhya Pradesh and Maharashtra. These three states account for 80% of the national output. Rainfall has also been inadequate in some areas of Maharashtra and MP. Soybean is a 90-day kharif crop. Sowing begins with the onset of monsoon in June, for harvesting in the second half of September.

India meets 55% of its annual 23.5 mt of vegetable oil demand through import, largely from Indonesia, Malaysia and Argentina. Traders have urged the government to allow import of oilseeds duty-free, to make edible oilseed available for domestic crushers.

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