High prices may boost soybean acreage

The country's soybean acreage in 2007-08 (November-October) is likely to rise by 500,000 hectare to 7.8 million hectare as current good prices prevailing in the spot markets would incentivise farmers to sow more of the crop, according to Rajesh Agarwal, spokesperson and past president of Soybean Processors Association of India.

"Sowing could be higher if monsoon is favourable. Assuming a historical yield of 1 tonne a hectare, the country's soybean production could rise by 500,000 tonne," said Agarwal. The India Meteorological Department has forecast the June-September southwest monsoon to be 95 per cent of the long-period average and is likely to hit the country's mainland on May 24.

"I do not see any problems related to the sowing of soybean this year. It should be healthy," Agarwal said.

Last month, the government pegged the country's year to June soybean output at 8.7 mt compared with 8.3 mt a year ago.

Most of the increase in area was likely to be in Maharashtra, with marginal rise in Tamil Nadu and Karnataka, he said.

"Due to the losses incurred by cotton and sugarcane farmers in Maharashtra this year, there will be a shift in acreage to soybean, which has witnessed good prices," Agarwal said, adding that area under soybean could move up by 450,000 hectares in the state.