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NEWS ADMIN

Mahamad Rodzi Abdul Ghani

DATE

26/11/2004

NEWS PROVIDER

Mahamad Rodzi Abdul Ghani

NEWS SOURCE

Financial Express

CATEGORY

HEADLINE

Oilseeds output to drop 5.6% on poor rains
MUMBAI, HYDERABAD, NOV 22: The production of nine major oilseeds in theoil year 2004-05 (November-October) is estimated to be 5.6% lower at 131.5lakh tonne as opposed to 138.9 lakh tonne a year ago, the CentralOrganisation for Oil Industry and Trade (COOIT) said late Sunday after the42nd All India Convention of Oilseeds, Oil Trade & Industry held atHyderabad.

According to COOIT, the area under cultivation has increased by 14.06% inkharif 2004 over kharif 2003. However, due to moisture stress and poorrains in July 2004, production estimates of the country that importstwo-fifth of its annual edible oil needs from countries such as Malaysia,Indonesia, Argentina and Brazil have been reduced to 131.1 lakh tonne from138.9 lakh tonne last year.

Although the oilseeds crop is down compared with last year, the overalloil availability is expected to be more or less the same. The totalvegetable oil available from kharif oilseeds crop and the secondary sourceis estimated at 45.6 lakh tonne compared with 45.9 lakh tonne last year.

Cotton bales production is estimated at 205 lakh bales compared with 165lakh bales last year. The production of washed cottonseed oil is estimatedat 6.2 lakh tonne compared with to 4.8 lakh tonne last year. The Rice branoil production is estimated at 6,80,000 tonne compared with 6,50,000 tonnelast year.

Kharif (winter) crops, mainly groundnut and soybean, are sown in June andJuly and harvested in October and November. Mustard is grown in the rabior summer season and reaped in February and March. Traders said edible oilimports were expected to cross the 5 million-tonne mark in the year toOctober 2005, up from 4.4 million tonne in the previous year because ofthe lower availability of domestic oils.

The total production of groundnut in shells this oilseed year is expectedto be 44.5 lakh tonne, against 53 lakh tonne last year.

The decline in the projections was because Gujarat is seen producing only15 lakh tonne of groundnut in shells this year, a 50% decline over thelast year’s 30 lakh tonnes. However, production in Andhra Pradesh isexpected to rise to 9,50,000 tonnes from 6,50,000 tonnes in 2003-04.

Karnataka and Tamil Nadu are expected to produce 6,00,000 tonne each thisyear.

The total production of soybean is expected to be 66 lakh tonne in2004-05, compared with 68.5 lakh tonne last year. Madhya Pradesh andMaharashtra are expected to produce 39 lakh tonne and 20 lakh tonne,respectively, this year. Andhra Pradesh is estimated to produce 70,000tonne of soybean.

Sesame seed production is expected to decline to 4,70,000 tonne, from5,50,000 tonne in 2003-04. Andhra Pradesh, Gujarat, Rajasthan and MadhyaPradesh are seen producing 30,000 tonne, 1,20,000 tonne, 80,000 tonne and50,000 tonne, respectively.

Toria production is expected to touch 1,80,000 tonne, whereas sunflowerseed production is seen rising 75% to 4,90,000 tonne in 2004-05.

Castor seed production is expected to rise to 7,70,000 tonne from 6,70,000tonne in 2003-04. Niger seed production is also expected to increase to1,20,000 tonne compared with 70,000 tonne in 2003-04.