India's winter oilseeds output is expected to rise to 13.04 million tonnes from 12.36 million due to September rains that have also brightened summer output prospects, a leading trade body said on Friday.
India, the world's largest edible oil buyer, imports nearly half its annual vegetable oil needs of around 11 million tonnes. It mainly buys palm oil from Malaysia and Indonesia and soyoil from Argentina and Brazil.
Despite a higher winter oilseeds output estimate, edible oil imports will grow slightly because consumption is increasing due to better incomes and population growth.
Edible oil imports in the new season beginning October are forecast at 5.2-5.3 million tonnes compared with 5.1 million estimated in 2004/05, Sandeep Bajoria, president of the Central Organisation for Oil Industry and Trade, told Reuters.
Winter soybean output is expected to fall to 5.36 million tonnes from 5.85 million, the organisation said in its first estimate.
But the fall in output will be more than made up by a rise in groundnut production, which is expected to jump to 5.65 million tonnes from 4.45 million last year.
Bajoria said rains in the past two weeks had given a new lease of life to the groundnut crop. "That is the sole reason for a higher groundnut estimate."
India, which is a leading oilmeal exporter in Asia, has sold 15,000 tonnes of soymeal to South Korea from the new crop at $252 a tonne cost and freight for shipment in November and December, a trade official said.
Industry officials said summer prospects were bright because soil moisture due to rains in early September will help sowing operations.
"The only reason for a better groundnut crop is appropriate rains. The crop in Andhra Pradesh, Tamil Nadu and Karnataka was comfortable and very good in the western region," said B.V. Mehta of the Solvent Extractors Association of India.
Winter sunflower seed output was expected to be 520,000 tonnes, up from 490,000 tonnes a year ago, the organisation said after a meeting in Mumbai.
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