India soybean carryover stock to be higher than last year

India soybean carryover stock is likely to be higher this year compared with last year, said trade experts.

"We feel around 500,000 tonne will be carried over to the next oil year which was negligible last year," said Rajesh Agrawal, coordinator and spokesman, Soybean Processors Association of India (SOPA).

Holding back by farmers in anticipation of better prices and good output in kharif 2011-2012 are seen as major reasons behind the higher carryover stock, added Agrawal.

Carryover stock is the stock which does not reach the market in its year of production and is added to the next season's supply as old crop stock.

Supplies showed some improvement after sowing completed in June but it remained below expectations as there was no selling pressure on producers, said traders.

Trade experts hope for better arrivals in oil year 2013-2014 due to higher carryover stocks and expectations of good output in the current kharif season.

Traders said heavy and incessant rains caused some damage initially but later situation improved and hence they expect output equal to or more than last Kharif season.

Last year, India soybean output was around 12.68 million tonne with acreage around 10.67 million hectares, according to SOPA data.

According to Ministry of Agriculture figures, soybean acreage in kharif 2013 (till August 29) was seen around 12.17 million hectares.