India's Summer-Sown Oilseed Output Seen Higher

Higher acreage and good rains will boost India's summer-sown oilseed output, the country's farm secretary said on Wednesday, signalling lower edible oil imports in the new season beginning October.India produced 13.93 million tonnes of summer-sown oilseeds in 2006/07, down 17 percent from the year before, according to industry estimates.
"From the current sowing figures, we feel that oilseed production will be higher in the season due to the good weather conditions and government efforts to boost production," P.K. Mishra told reporters.

According to the latest farm ministry figures, farmers have sown oilseeds on 16.47 million hectares (40.70 million acres) in the season against 15.23 million ha last year.

Oilseed output is crucial for India, which imports nearly half of its annual needs of 11 million tonnes, buying palm oils from Malaysia and Indonesia, and soy oils from Brazil and Argentina.

A fall in domestic output and a sharp rise in palm oil prices as more is used to produce biodiesel prompted India to cut import duties to help control inflation.

Last month, it cut duty on crude palm oil to 45 percent, while that on soy group of oils was trimmed to 40 percent. He said overall planting of crops in the monsoon season has been progressing well and production would be healthy despite fierce floods in eastern states.