Oilseeds crop tipped to rise

Total oilseed production in the country was forecast at 29.8 million tons, subject to normal weather conditions during the marketing year (MY) 2004.

This included 7.2 million tons of soybeans, 7.8 million tons of peanut, 6.9 million tons of rapeseed, 5.4 million tons of cottonseed, 1.9 million tons of sunflowerseed, and 0.7 million tons of copra.

Prevailing higher oilseed prices and recent increases in government support price for oilseeds vis-à-vis cereal crops, and likely higher input use by farmers in response to higher returns from oilseed this year, would drive production growth.

MY 2003 oilseed production estimates were raised following reports of better than anticipated production in major growing states as weather conditions turned favourable.

The rapeseed crop was estimated to soar to a record 6.8 million tons against earlier estimates of 6.2 million tons. Excellent subsoil moisture at planting time resulted in increased planting while ideal growth conditions boosted yields.

Soybeans, harvested last fall, benefited from well distributed monsoon rains and relatively low incidence of pests and diseases. Its production was estimated at 6.8 million tons, backed by market arrival and crushing data.

Despite the kharif peanut crop in southern India facing problems, MY 2003 peanut crop was estimated at 7.7 million tons after higher rabi production.

Almost 85 per cent of the oilseed crop was crushed for oil, with the balance used as food, seeds and feed. Food use is mostly confined to peanut, soybeans, and rapeseed.

Direct food use of peanuts, mostly as table nuts, was approximately 705,000 tons in MY 2003 and was tipped to increase to 750,000 tons in MY 2004.

Food use of soybeans was forecast to grow 9 per cent to 300,000 tons in MY 2004, mostly as full fat soy flour, soy milk, and tofu. Some cottonseed was used as animal feed.

Oilseeds imports had ceased to be feasible owing to high import duties and tough phytosanitary regulations. Oilseed processors were yet to develop a common policy for oilseed imports.

Oilseed exports were confined to hand picked select (HPS) peanuts, sesameseed, nigerseed, and small quantities of rapeseed and sunflowerseed. MY 2004 peanut exports were forecast to increase to 200,000 tons from the MY 2003 export level of 150,000 tons, mostly to the south-east Asian countries. China was the major competitor in peanut exports.