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This year, oilseed production is expected to decline to 13.3 million tonnes (mt) from 14.2 mt last year. This is primarily because total area under oilseeds this year is estimated at 16.5 million hectares, compared with 18.2 million hectares last year. Also, this monsoon, rains were delayed by two-three weeks, which hit sowing of oilseeds such as groundnut, soybean, sunflower and sesame.
Despite the acreage for soybean seeing a fall, the yield is expected to be higher. While addressing an annual general meeting of the Solvent Extractors’ Association, G G Patel, a trader with Globoil, said this year, soybean production was expected at 9.5 mt, against nine mt last year.
Patel said this year, cotton production was estimated at 42.5 million bales (1 bale=170 kg), compared with 40 million bales last year, adding many farmers had sown cotton in place of oilseeds this season.
The production of groundnut is estimated at 3.3 mt, against 4.7 mt last year.
Vijay Data, president of the Solvent Extractors’ Association, said this oil year (September 2013-October 2014), vegetable oil import might stand at 11.3-11.5 mt. Last oil year, India imported 10.7 mt of vegetable oil.
Palm oil imports are expected to rise, as prices in the international market are subdued. Data said India should raise import duty on crude edible oil to 10 per cent from the current 2.5 per cent. Import tax on refined oil should be raised from 10 per cent to 25 per cent, he added.
