Oilseed output to hit 30 mn tonnes

Govt estimates based on better yield due to favourable monsoon, increase in acreage.

India’s oilseeds output is estimated to hit a record high of 30.25 million tonnes for the year 2010-11. The growth in production is attributed to a favourable monsoon and a marginal increase in oilseeds acreage.

Taking a cue from the estimates, experts anticipate a dip in imports of edible oils by half a million tonnes this year. Higher output might also help ease inflation and bring down edible oil prices.

According to revised production estimates for 2010-11 released by the Ministry of Agriculture, oilseeds production will touch 30.25 million tonnes, up from the earlier 27.8 million tonnes. Production will increase by almost six million tonnes from 24 million tonnes recorded last year.

B V Mehta, executive director, Solvent Extractors’ Association of India (SEA), said: “Our imports of edible oils may drop to around 8.5 million tonnes against 9.2 million tonnes imported last year. Capacity utilisation has improved due to higher domestic output. Presently, millers are operating at a capacity utilisation of around 65-70 per cent against 40-50 per cent last year.”

The rise in oilseeds production is primarily attributed to a favourable monsoon and a marginal rise in the acreage — from 9.3 million hectares in 2010 to 9.5 million hectares in 2011.

“Oilseed production in the country has been higher than last year. This is mainly because of the increased yield. However, there has been a small increase in the area under oilseed cultivation too. But a favourable monsoon this year has given a good yield,” said Mehta.

The yield for the current year has remained in the range of around 950-1,050 kg per hectare, the highest in the last three years.

“India’s edible oil prices are linked to international prices. There has been some fluctuations in recent times. But in the domestic market, edible oil prices have remained lower due to increased crushing activity. The demand is high but with robust production scenario, edible oil prices may remain under pressure,” said an official of the Central Organisation for Oil Industry & Trade. India’s per capita consumption of edible oils is estimated at around 13.5 kg, up from around 11 kg in 2008.

Soyabean and groundnut are among major oilseeds crops cultivated in India. Government estimates said soyabean production will touch 12.59 million tonnes, while groundnut would cross the seven-million-tonnes mark this year.