MP soybean acreage to rise 5-6%

"Last year, soybean acreage in Madhya Pradesh was 4.7 million hactare (ha) and this season, the area is expected to rise above 5 million hactare," said Rajesh Agarwal, coordinator, Soybean Processors Association of India.

Madhya Pradesh is the largest soybean producing state in India, accounting for around 70 per cent of the country's total output.

Soybean farmers fetched better returns last year because of the surge in global soyoil and soymeal prices, traders said.

Soyoil prices rose because of diversion of cooking oils for bio-fuel, while strong overseas demand boosted the prices of soymeal.

Earlier this month, Davish Jain, chairman, Central Organisation of Oil Industry and Trade, had said that India's soymeal exports in the year ending September are likely to touch a record high of 5 million tonnes.

Rising prices have prompted many farmers to switch to the highly remunerative oilseed crops, said Dilip Patwa, another trader based in Indore.

Madhya Pradesh farmers may shift to soybean cultivation from pulses and maize but the shift will not be very significant, traders said.

Sowing of soybean has begun at only a few places, but within 8-10 days it is likely to spread throughout the state, said Arun Gupta, another Indore-based trader.

The appropriate time for soybean sowing is after the crop-growing regions receive about 3-4 inches of rain, traders said.

With the rise in acreage and expectations of a favourable monsoon following its timely onset and good progress, soybean output in the state is seen rising almost 15 per cent from over 5 million tonnes last year, Agarwal said.

India Meteorological Department has forecast the rainfall in this monsoon season at 99 per cent of the long-term average.

Traders are also expecting a rise in productivity, which, in turn, has further enhanced soybean output prospects.

"Productivity is seen rising, as farmers are likely to use better inputs this year after getting high prices last season," Agarwal said.