Crop damage to cap soybean output growth this year

India's soybean output is set to rise a marginal two per cent this kharif season, despite a substantial 12 per cent increase in sowing area. Excessive rainfall in a couple of major soybean-growing areas damaged the crop, leading to a decline in average yield this year.

Data compiled by the Soybean Processors' Association (SOPA) estimates India's total soybean output this year at 12.98 million tonnes, as compared to 12.68 million tonnes in the previous season. The soybean output, however, showed a staggering 11.41 per cent increase from 2011.

Despite prices of soybean remaining under pressure throughout the last year, farmers evinced interest in bringing more area under this major kharif oilseed crop amid expectations that the government would arrange soybean procurement at the minimum support (MSP) price announced by it at the beginning of the season. While soybean prices fell below the MSP on a couple of occasions last year, farmers remained hopeful of a recovery due to India's reliance on imported edible oil.

"Based on the data collected by agriculture departments of the respective states, the area covered under soybean cultivation during kharif 2013 is 120.327 lakh hectares, as compared to 106.948 lakh hectares during kharif 2012, which shows a growth of 12.51 per cent. Due to the timely arrival of the monsoon, the area under soybean cultivation has increased during kharif 2013. But the crop suffered due to continuous rains and floods," said Rajesh Agrawal, SOPA co-ordinator. According to the survey conducted by SOPA, the all India estimated yield for kharif 2013 is estimated at 1,079 kg per ha as compared to 1,185 kg per ha in the previous season, a decline by 8.94 per cent.

"Higher soybean output would increase farmers' holding capacity as shown during the last year. Also, it would reduce India's reliance on imported oil," said Dinesh Shahra, managing director of Ruchi Soya Industries Ltd, a leading FMCG player in India.

India currently imports 53 per cent of its 16.5 million tonnes of annual edible oil demand, while the remaining is met through domestic sources.